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Knowledge Flows and Knowledge Externalities

  • Giovanni Peri

The diffusion of knowledge in the world generates positive externalities if knowledge flows increase the productivity of R&D. Our work analyzes knowledge diffusion and knowledge externalities in generating innovation and in determining productivity. We first estimate the determinants of knowledge flows across 141 sub-national regions in 19 countries of Europe and North America as revealed by patent citation between US-granted patents. Then we estimate the impact of these flows on productivity of R&D resources in generating innovation (patenting) and productivity (TFP). While we find that knowledge diffusion depends on geographical and technological distance and is well described by a pseudo-gravity model, we do not find evidence of significant positive externalities from existing knowledge.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 765.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_765
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  1. Coe, D.T. & Helpman, E., 1993. "International R&D Spillovers," Papers 5-93, Tel Aviv.
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  14. Ricardo J. Caballero & Adam B. Jaffe, 1993. "How High are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth," NBER Working Papers 4370, National Bureau of Economic Research, Inc.
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