Spillovers in Space: Does Geography Matter?

John van Reenen, Margaret Slade, Sergey Lychagin and Joris Pinkse

No 7928, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We simultaneously assess the contributions to productivity of three sources of research and development spillovers: geographic, technology and product?market proximity. To do this, we construct a new measure of geographic proximity that is based on the distribution of a firm?s inventor locations rather than its headquarters, and we report both parametric and semiparametric estimates of our geographic?distance functions. We find that: i) Geographic space matters even after conditioning on horizontal and technological spillovers; ii) Technological proximity matters; iii) Product?market proximity is less important; iv) Locations of researchers are more important than headquarters but both have explanatory power; and v) Geographic markets are very local.

Keywords: Geographic proximity; R&; d spillovers; Semiparametric; Technological proximity (search for similar items in EconPapers)
JEL-codes: C23 L60 O33 (search for similar items in EconPapers)
Date: 2010-07
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Citations: View citations in EconPapers (82)

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Related works:
Journal Article: Spillovers in Space: Does Geography Matter? (2016)
Working Paper: Spillovers in space: does geography matter? (2016)
Working Paper: Spillovers in Space: Does Geography Matter? (2010)
Working Paper: Spillovers in Space: Does Geography Matter? (2010)
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