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Local knowledge spillovers and innovation persistence of firms

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  • Adelheid Holl
  • Bettina Peters
  • Christian Rammer

Abstract

Innovation activities of firms tend to be highly persistent. Yet, little is still known about potential spatial contingencies affecting the degree of persistence. This paper analyses the influence of local knowledge spillovers on firms’ persistence in innovation activities. Using a representative panel data set of firms in Germany from 2002 to 2016, complemented by detailed geographic information of patent activity over discrete distances to proxy local knowledge spillovers, we find that the local patenting activity positively moderates persistency in innovation activities. Estimations with different distance bands show that the strength of knowledge spillovers that contribute to innovation persistence attenuates with increasing distance and vanishes beyond 30 kilometres in manufacturing and beyond 20 kilometres in services.

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  • Adelheid Holl & Bettina Peters & Christian Rammer, 2023. "Local knowledge spillovers and innovation persistence of firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(6), pages 826-850, August.
    • Handle: RePEc:taf:ecinnt:v:32:y:2023:i:6:p:826-850
    DOI: 10.1080/10438599.2022.2036609
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    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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