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Spreading the Word: Geography, Policy, and Knowledge Spillovers

Author

Listed:
  • Sharon Belenzon

    (Fuqua School of Business, Duke University)

  • Mark Schankerman

    (London School of Economics and CEPR)

Abstract

Using new data on citations to university patents and scientific publications, we study how geography affects university knowledge spillovers. Citations to patents decline sharply with distance and are strongly constrained by state borders. The effect of distance on citations to scientific publications is less sharp, and the state border effect on publications is significant only for lower-quality public universities. We show that the state border effect is heterogeneous and strongly influenced by university and state characteristics and policies. It is larger for universities that are public and that have strong local development policies, and in states with strong noncompete labor laws, greater reliance on in-state educated scientists, and lower rates of interstate scientific labor mobility. We confirm the impact of noncompete statutes by studying a policy reform in Michigan. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Sharon Belenzon & Mark Schankerman, 2013. "Spreading the Word: Geography, Policy, and Knowledge Spillovers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 884-903, July.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:3:p:884-903
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    Keywords

    knowledge spillovers; diffusion; geography; university technology transfer; patents; scienti c publications;

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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