Localized knowledge spillovers and patent citations: A distance-based approach

Yasusada Murata, Ryo Nakajima, Ryosuke Okamoto () and Ryuichi Tamura ()
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Ryosuke Okamoto: National Graduate Institute for Policy Studies
Ryuichi Tamura: Graduate School of Humanities and Social Sciences, University of Tsukuba

No 763, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: We develop a new approach to localized knowledge spillovers by incorporating the concept of control patents (Jaffe, Trajtenberg and Henderson 1993) into the distancebased test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance while allowing for cross-boundary spillovers, unlike the existing literature where the extent of localized knowledge spillovers is detected at the state or metropolitan statistical area level. We revisit the recent debate by Thompson and Fox-Kean (2005) and Henderson, Jaffe and Trajtenberg (2005) on the existence of localized knowledge spillovers, and find solid evidence supporting localization, even when finer controls are used.

Keywords: localized knowledge spillovers; distance-based tests; microgeographic data; K-density; patent citations; control patents (search for similar items in EconPapers)
JEL-codes: O31 R12 (search for similar items in EconPapers)
Pages: 32pages
Date: 2011-03
New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo, nep-ino, nep-ipr, nep-pr~ and nep-ure
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Citations: View citations in EconPapers (10)

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Working Paper: Localized knowledge spillovers and patent citations: A distance-based approach (2011)
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