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Spillovers in space: does geography matter?

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

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using US firm level panel data we simultaneously assess the contributions to productivity of three potential sources of research and development spillovers: geographic, technological, and product market (“horizontal”). To do so, we construct new measures of geographic proximity based on the distribution of a firm’s inventor locations as well as its headquarters. We find that geographic location is important for productivity, perhaps dominating other spillover mechanisms, and that both intra– and inter–regional (counties) spillovers matter. The geographic location of a firm’s researchers is more important than its headquarters. These benefits may be the reason why local policy–makers compete so hard for the location of local R&D labs and high tech workers.

Keywords: R&D spillovers; geographic proximity; technological proximity; horizontal proximity; spatial econometrics (search for similar items in EconPapers)
JEL-codes: C23 L60 O33 (search for similar items in EconPapers)
Date: 2016-06-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Published in Journal of Industrial Economics, 5, June, 2016, 64(2), pp. 295 - 335. ISSN: 0022-1821

Downloads: (external link)
http://eprints.lse.ac.uk/67029/ Open access version. (application/pdf)

Related works:
Journal Article: Spillovers in Space: Does Geography Matter? (2016) Downloads
Working Paper: Spillovers in Space: Does Geography Matter? (2010) Downloads
Working Paper: Spillovers in Space: Does Geography Matter? (2010) Downloads
Working Paper: Spillovers in Space: Does Geography Matter? (2010) Downloads
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