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Knowledge Spillovers and Local Industry Growth: A Patent Citation Approach

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  • Kejun Song
  • Gerald Simons
  • Wei Sun

Abstract

We create unique patent-based measures of Marshall–Arrow–Romer (MAR) and Jacobs knowledge spillovers using patent citations data and use them to test the Glaeser et al. model of local industry employment growth on three emerging technology categories, namely, computing and communications, drugs and medical, and electrics and electronics. We test growth in 45 U.S. metropolitan statistical areas (MSAs) and consolidated metropolitan statistical areas (CMSAs) for eight two-digit industries over the period 1994 to 2000. We find strong evidence for MAR spillovers from specialization, but little for Jacobs spillovers from diversity. Our results suggest that regional specialization, but not diversity, boosts local industry employment growth in these knowledge fields. JEL classifications : J21, L16

Suggested Citation

  • Kejun Song & Gerald Simons & Wei Sun, 2019. "Knowledge Spillovers and Local Industry Growth: A Patent Citation Approach," The American Economist, Sage Publications, vol. 64(1), pages 60-72, March.
  • Handle: RePEc:sae:amerec:v:64:y:2019:i:1:p:60-72
    DOI: 10.1177/0569434518775102
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    References listed on IDEAS

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    More about this item

    Keywords

    knowledge spillovers; patent citations; MAR externalities; Jacobs externalities; specialization; diversity; local growth;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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