Is Distance Dying at Last? Falling Home Bias in Fixed Effects Models of Patent Citations

Rachel Griffith (), Sokbae (Simon) Lee () and John van Reenen ()

No 13338, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the home bias of international knowledge spillovers as measured by the speed of patent citations (i.e. knowledge spreads slowly over international boundaries). We present the first compelling econometric evidence that the geographical localization of knowledge spillovers has fallen over time, as we would expect from the dramatic fall in communication and travel costs. Our proposed estimator controls for correlated fixed effects and censoring in duration models and we apply it to data on over two million citations between 1975 and 1999. Home bias declines substantially when we control for fixed effects: there is practically no home bias for the more modern sectors such as pharmaceuticals and information/communication technologies.

JEL-codes: F23 O32 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino, nep-ipr and nep-knm
Date: 2007-08
Note: LS PR
View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w13338.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Is Distance Dying at Last? Falling Home Bias in Fixed Effects Models of Patent Citations (2007)
Working Paper: Is Distance Dying at Last? Falling Home Bias in Fixed Effects Models of Patent Citations (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:13338

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w13338
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().