Localization of Knowledge-creating Establishments

Hiroyasu Inoue (), Kentaro Nakajima and Yukiko Saito

No 47, HIT-REFINED Working Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This study investigates the localization of establishment-level knowledge creation using data from a Japanese patent database. Using distance-based methods, we obtain the following results. First, Japanese patent-creating establishments are significantly localized at the 5% level, with a localization range of approximately 80 km. Second, localization is observed for all patent technology classes, and the extent of localization has a positive relationship with the level of technology measured by R&D investment. Finally, the extent of localization is stronger for establishments that are more productive in terms of both the number of patents and the number of citations received, i.e., quantitatively and qualitatively. These results indicate that geographical proximity is important for knowledge spillover, particularly for knowledge-demanding establishments.

Keywords: Knowledge spillover; Agglomeration; Micro-geographic data (search for similar items in EconPapers)
JEL-codes: R11 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016-03
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-knm, nep-sbm and nep-ure
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/27774/wp047.pdf

Related works:
Working Paper: Localization of Knowledge-creating Establishments (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:remfce:47

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