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The Geography of Knowledge Spillovers between High-Technology Firms in Europe - Evidence from a Spatial Interaction Modelling Perspective

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  • Manfred M. Fischer

    ()

  • Thomas Scherngell

    ()

  • Eva Jansenberger

    ()

Abstract

The focus in this paper is on knowledge spillovers between high-technology firms in Europe, as captured by patent citations. High-technology is defined to include the ISIC-sectors aerospace (ISIC 3845), electronics-telecommunication (ISIC 3832), computers and office equipment (ISIC 3825), and pharmaceuticals (ISIC 3522). The European coverage is given by patent applications at the European Patent Office that are assigned to high-technology firms located in the EU-25 member states, the two accession countries Bulgaria and Romania, and Norway and Switzerland. By following the paper trail left by citations between these high-technology patents we adopt a Poisson spatial interaction modelling perspective to identify and measure spatial separation effects to interregional knowledge spillovers. In doing so we control for technological proximity between the regions, as geographical distance could be just proxying for technological proximity. The study produces prima facie evidence that geography matters. First, geographical distance has a significant impact on knowledge spillovers, and this effect is substantial. Second, national border effects are important and dominate geographical distance effects. Knowledge flows within European countries more easily than across. Not only geography, but also technological proximity matters. Interregional knowledge flows are industry specific and occur most often between regions located close to each other in technological space.

Suggested Citation

  • Manfred M. Fischer & Thomas Scherngell & Eva Jansenberger, 2005. "The Geography of Knowledge Spillovers between High-Technology Firms in Europe - Evidence from a Spatial Interaction Modelling Perspective," ERSA conference papers ersa05p5, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p5
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    References listed on IDEAS

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    Cited by:

    1. Autant-Bernard, Corinne & Fadairo, Muriel & Massard, Nadine, 2013. "Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence," Research Policy, Elsevier, vol. 42(1), pages 196-210.
    2. Richard Sellner & Wolfgang Polasek, 2011. "Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," ERSA conference papers ersa11p819, European Regional Science Association.
    3. Julio M. Rosa & Pierre Mohnen, 2007. "Knowledge Transfers between Canadian Business Enterprises and Universities: Does Distance Matter?," Annals of Economics and Statistics, GENES, issue 87-88, pages 303-323.
    4. Olivier Parent & James P. LeSage, 2008. "Using the variance structure of the conditional autoregressive spatial specification to model knowledge spillovers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 235-256.
    5. James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin-Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967.
    6. Morescalchi, Andrea & Pammolli, Fabio & Penner, Orion & Petersen, Alexander M. & Riccaboni, Massimo, 2015. "The evolution of networks of innovators within and across borders: Evidence from patent data," Research Policy, Elsevier, vol. 44(3), pages 651-668.
    7. Maryann Feldman & Dieter Kogler & David Rigby, 2013. "rKnowledge: The Spatial Diffusion of rDNA Methods," Papers in Evolutionary Economic Geography (PEEG) 1311, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2013.
    8. Wolfgang Polasek & Richard Sellner, 2013. "The Does Globalization Affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 23-65, March.
    9. Corinne Autant-Bernard, 2011. "Spatial econometrics of innovation: Recent contributions and research perspectives," Working Papers halshs-00605056, HAL.
    10. Hoekman, Jarno & Frenken, Koen & Tijssen, Robert J.W., 2010. "Research collaboration at a distance: Changing spatial patterns of scientific collaboration within Europe," Research Policy, Elsevier, vol. 39(5), pages 662-673, June.
    11. Gilroy B. Michael & Lukas Elmar & Heimann Christian, 2013. "Technologiestandort Deutschland und internationale Wissensspillover / Technology Site Germany and International Knowledge Spillovers: Welchen Einfluss nehmen ausländische MNU auf deutsche Exporte? / W," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(5-6), pages 575-599, October.
    12. Luo, Shali & Miller, J. Isaac, 2014. "On the spatial correlation of international conflict initiation and other binary and dyadic dependent variables," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 107-118.
    13. Christian Sommeregger & Christoph Hammer & Daniel Bekesi & Matthias Koch, 2011. "A spatial panel data version of the knowledge capital model," ERSA conference papers ersa11p727, European Regional Science Association.
    14. Nijkamp, Peter, 2009. "Entrepreneurship, Development, and the Spatial Context Retrospect and Prospect," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
    15. Amitrajeet Batabyal, 2010. "An analysis of adverse selection, entrepreneurial activity, and the decision to go public," Letters in Spatial and Resource Sciences, Springer, vol. 3(2), pages 79-90, July.
    16. Rafael Boix & José Luis Hervás-Oliver & Blanca De Miguel-Molina, 2013. "“I want creative neighbours”. Do creative service industries spillovers cross regional boundaries?," Working Papers 1315, Department of Applied Economics II, Universidad de Valencia.
    17. David Rigby, 2012. "The Geography of Knowledge Relatedness and Technological Diversification in U.S. Cities," Papers in Evolutionary Economic Geography (PEEG) 1218, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2012.
    18. Favaro, Donata & Ninka, Eniel & Turvani, Margherita, 2012. "Productivity in innovation: the role of inventor connections and mobility," MPRA Paper 38950, University Library of Munich, Germany.
    19. Amitrajeet Batabyal & Hamid Beladi, 2010. "A model of entrepreneurial activity with two actions over time and under uncertainty," Letters in Spatial and Resource Sciences, Springer, vol. 3(2), pages 45-54, July.
    20. Thomas Scherngell & Michael Barber, 2011. "Distinct spatial characteristics of industrial and public research collaborations: evidence from the fifth EU Framework Programme," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(2), pages 247-266, April.

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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