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Spreading the Word: Geography, Policy and Knowledge Spillovers

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Listed:
  • Sharon Belenzon
  • Mark Schankerman

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 up to about 150 miles and are strongly constrained by state borders. Distance also constrains citations to scientific publications, but the impact is less sharp and persists over greater distances. The state border effect for publications is significant only for lower quality public universities. We show that the state border effect is heterogeneous, and is strongly influenced by university and state characteristics and policies. It is larger for public universities and those with strong local development policies. The border effect is larger in states with strong non-compete laws that facilitate intrastate labor mobility, states with greater reliance on in-state educated scientists and engineers, and states with lower rates of interstate scientific labor mobility. We also confirm the impact of non-compete statutes by studying a policy reform in Michigan.

Suggested Citation

  • Sharon Belenzon & Mark Schankerman, 2010. "Spreading the Word: Geography, Policy and Knowledge Spillovers," CEP Discussion Papers dp1005, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp1005
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    File URL: http://cep.lse.ac.uk/pubs/download/dp1005.pdf
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    References listed on IDEAS

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    1. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
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    Citations

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    Cited by:

    1. Drivas, Kyriakos & Economidou, Claire & Karkalakos, Sotiris & Tsionas, Efthymios G., 2016. "Mobility of knowledge and local innovation activity," European Economic Review, Elsevier, vol. 85(C), pages 39-61.
    2. Anna Valero & John Van Reenen, 2016. "The Economic Impact of Universities: Evidence from Across the Globe," NBER Working Papers 22501, National Bureau of Economic Research, Inc.
    3. Pierre Azoulay & Joshua S. Graff Zivin & Bhaven N. Sampat, 2011. "The Diffusion of Scientific Knowledge across Time and Space: Evidence from Professional Transitions for the Superstars of Medicine," NBER Chapters,in: The Rate and Direction of Inventive Activity Revisited, pages 107-155 National Bureau of Economic Research, Inc.
    4. Stepan Zemtsov & Alexander Muradov & Imogen Wade & Vera Barinova, 2016. "Determinants of Regional Innovation in Russia: Are People or Capital More Important?," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 10(2), pages 29-42.
    5. MURATA, Yasusada & NAKAJIMA, Ryo & TAMURA, Ryuichi, 2016. "Testing for localization: A new approach," IIR Working Paper 16-11, Institute of Innovation Research, Hitotsubashi University.
    6. repec:oup:scippl:v:44:y:2017:i:5:p:670-682. is not listed on IDEAS
    7. repec:taf:regstd:v:51:y:2017:i:8:p:1246-1258 is not listed on IDEAS
    8. repec:spr:jahrfr:v:37:y:2017:i:2:d:10.1007_s10037-017-0117-8 is not listed on IDEAS
    9. Yao Amber Li & Keith Head & Asier Minondo, 2015. "Geography, Ties, and Knowledge Flows: Evidence from Citations in Mathematics," HKUST IEMS Working Paper Series 2015-30, HKUST Institute for Emerging Market Studies, revised Sep 2015.
    10. Kyriakos Drivas & Claire Economidou, 2015. "Is geographic nearness important for trading ideas? Evidence from the US," The Journal of Technology Transfer, Springer, vol. 40(4), pages 629-662, August.
    11. Lauren Lanahan, 2016. "Multilevel public funding for small business innovation: a review of US state SBIR match programs," The Journal of Technology Transfer, Springer, vol. 41(2), pages 220-249, April.
    12. Francesco Quatraro & Stefano Usai, 2017. "Are knowledge flows all alike? Evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1246-1258, August.
    13. Alexey A. Egorov & Oleg V. Leshukov & Alexander D. Gromov, 2017. "The Role of Universities in Economic Development of Russian Regions," HSE Working papers WP BRP 41/EDU/2017, National Research University Higher School of Economics.
    14. repec:spr:scient:v:112:y:2017:i:1:d:10.1007_s11192-017-2355-5 is not listed on IDEAS
    15. Lin, Yatang & Qin, Yu & Xie, Zhuan, 2015. "International technology transfer and domesticinnovation: evidence from the high-speed rail sector inChina," LSE Research Online Documents on Economics 66057, London School of Economics and Political Science, LSE Library.
    16. Andrea Bonaccorsi & Massimo Colombo & Massimiliano Guerini & Cristina Rossi-Lamastra, 2014. "The impact of local and external university knowledge on the creation of knowledge-intensive firms: evidence from the Italian case," Small Business Economics, Springer, vol. 43(2), pages 261-287, August.
    17. Ashish Arora & Sharon Belenzon & Honggi Lee, 2017. "Reversed Citations and the Localization of Knowledge Spillovers," NBER Working Papers 23036, National Bureau of Economic Research, Inc.
    18. Agrawal, Ajay & Galasso, Alberto & Oettl, Alexander, 2014. "Roads and Innovation," CEPR Discussion Papers 10113, C.E.P.R. Discussion Papers.
    19. Stef Proost & Jacques-Francois Thisse, 2017. "What Can Be Learned from Spatial Economics?," HSE Working papers WP BRP 167/EC/2017, National Research University Higher School of Economics.
    20. Corine Autant-Bernard, 2015. "Que savons-nous de l’impact économique des parcs scientifiques ? Une revue de la littérature," Working Papers 1526, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    21. Maximilian Goethner & Michael Wyrwich, 2017. "Cross-faculty proximity and academic entrepreneurship: The role of business schools," Jena Economic Research Papers 2017-017, Friedrich-Schiller-University Jena.
    22. Drivas, Kyriakos & Economidou, Claire & Tsionas, Efthymios G., 2014. "A Poisson Stochastic Frontier Model with Finite Mixture Structure," MPRA Paper 57485, University Library of Munich, Germany.
    23. Sabrina T. Howell, 2017. "Learning from Feedback: Evidence from New Ventures," NBER Working Papers 23874, National Bureau of Economic Research, Inc.
    24. Corinne Autant-Bernard, 2015. "Que savons-nous de l’impact économique des parcs scientifiques ? Une revue de la littérature," Working Papers halshs-01211662, HAL.

    More about this item

    Keywords

    knowledge spillovers; diffusion; geography; university technology transfer; patents; scientific 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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