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 11-11, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: The existence of localized knowledge spillovers found by Jaffe, Trajtenberg and Henderson (1993) has recently been challenged by Thompson and Fox-Kean (2005). To settle this debate, we develop a new approach by incorporating their concepts of control patents into the distance-based test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance for each technology class while allowing for cross-boundary spillovers, unlike the existing literature where localization is detected at the state or metropolitan statistical area level. We find solid evidence supporting localized knowledge spillovers even when finer controls are used. We further relax the commonly made assumption of perfect controls, and show that the majority of technology classes exhibit localization unless hidden biases induced by imperfect controls are extremely large.

Pages: 42 pages
Date: 2011-09
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-ipr, nep-pr~ and nep-ure
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Localized Knowledge Spillovers and Patent Citations: A Distance-Based Approach (2014)
Working Paper: Localized knowledge spillovers and patent citations: A distance-based approach (2011)
Working Paper: Localized knowledge spillovers and patent citations: A distance-based approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:11-11

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