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Knowledge spillovers and patent citations: trends in geographic localization, 1976-2015

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  • Hyuk-Soo Kwon
  • Jihong Lee
  • Sokbae (Simon) Lee
  • Ryungha Oh

Abstract

This paper examines the trends in geographic localization of knowledge spillovers via patent citations, considering US patents from the period of 1976-2015. Despite accelerating globalization and widespread perception of the "death of distance," our multi-cohort "matched-sample" study reveals signicant and growing localization effects of knowledge spillovers at both intra- and international levels after the 1980s. We also develop a novel network index based on the notion of "farness," which an instrumental variable estimation shows to be a significant and sizable determinant of the observed trends at the state-sector level.

Suggested Citation

  • Hyuk-Soo Kwon & Jihong Lee & Sokbae (Simon) Lee & Ryungha Oh, 2017. "Knowledge spillovers and patent citations: trends in geographic localization, 1976-2015," CeMMAP working papers 55/17, Institute for Fiscal Studies.
    • Handle: RePEc:azt:cemmap:55/17
    DOI: 10.1920/wp.cem.2017.5517
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    as
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