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Measuring Spillovers from Industrial R&D: On the Importance of Geographic and Technological Proximity

Michael Orlando ()

RAND Journal of Economics, 2004, vol. 35, issue 4, 777-786

Abstract: I present evidence to suggest that an important share of the apparent geographic localization of spillovers from industrial R&D may be an artifact of other agglomerative forces. A production-function framework is used to examine the role of geographic and technological proximity for interfirm spillovers from R&D in SIC 35. Spillovers among firms within narrow, four-digit industrial classifications are generally stronger than those identified within the broader, three-digit class. Such spillovers, however, do not appear to be attenuated by distance. Geographic distance does appear to attenuate spillovers that cross four-digit boundaries, suggesting that they may play a role in the formation of diverse (but not too diverse) industrial agglomerations.

Keywords: Management of Technological Innovation and R&D Technological Change: Choices and Consequences; Diffusion Processes (includes impact on production, welfare, income distribution, international competitiveness, military power, measurement, and case studies; international transfer of technology) Other Production and Pricing Analysis (spatial analysis firm location decision; industrial districts) R&D (search for similar items in EconPapers)
JEL-codes: O32 O33 R32 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (85)

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