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Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations

Author

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  • Kristy Buzard
  • Gerald A. Carlino
  • Jake Carr
  • Robert M. Hunt
  • Tony E. Smith

Abstract

Patent citations are a commonly used indicator of knowledge spillovers among inventors, while clusters of research and development labs are locations in which knowledge spillovers are particularly likely to occur. In this paper, we assign patents and citations to newly defined clusters of American R&D labs to capture the geographic extent of knowledge spillovers. Our tests show that the localization of knowledge spillovers, as measured via patent citations, is strongest at small spatial scales and diminishes rapidly with distance. On average, patents within a cluster are about three to six times more likely to cite an inventor in the same cluster than one in a control group. At the same time, the strength of knowledge spillovers varies widely between clusters. The results are robust to the specification of patent technological categories, the method of citation matching and alternate cluster definitions.

Suggested Citation

  • Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2017. "Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations," Working Papers 17-32, Federal Reserve Bank of Philadelphia.
  • Handle: RePEc:fip:fedpwp:17-32
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Georgios Tsiachtsiras & Deyun Yin & Ernest Miguelez & Rosina Moreno, 2022. ""Trains of Thought: High-Speed Rail and Innovation in China"," IREA Working Papers 202220, University of Barcelona, Research Institute of Applied Economics, revised Nov 2022.
    2. Ludovic Dibiaggio & Benjamin Montmartin & Lionel Nesta, 2018. "Regional alignement and productivity growth," Sciences Po publications 25, Sciences Po.
    3. Giuseppe Calignano, 2022. "Not all peripheries are the same: The importance of relative regional innovativeness in transnational innovation networks," Growth and Change, Wiley Blackwell, vol. 53(1), pages 276-312, March.
    4. Chattergoon, B. & Kerr, W.R., 2022. "Winner takes all? Tech clusters, population centers, and the spatial transformation of U.S. invention," Research Policy, Elsevier, vol. 51(2).
    5. Georgios Tsiachtsiras & Deyun Yin & Ernest Miguelez & Rosina Moreno, 2022. "Trains of Thought: High-Speed Rail and Innovation in China," Working Papers hal-03891705, HAL.
    6. Wonsang Ryu & Thomas H. Brush & Joonhyung Bae, 2023. "How agglomeration affects alliance governance and innovation performance: The role of cluster size," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 297-310, January.
    7. repec:hal:spmain:info:hdl:2441/32ctbi8fbq8j5aom2j69qam6tf is not listed on IDEAS
    8. Holl, Adelheid & Peters, Bettina & Rammer, Christian, 2020. "Local knowledge spillovers and innovation persistence of firms," ZEW Discussion Papers 20-005, ZEW - Leibniz Centre for European Economic Research.
    9. Zhai, Xueqi & An, Yunfei, 2021. "The relationship between technological innovation and green transformation efficiency in China: An empirical analysis using spatial panel data," Technology in Society, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    spatial clustering; geographic concentration; R&D labs; localized knowledge spillovers; patent citations;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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