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Internet Adoption and Knowledge Diffusion

Chris CM Forman and Nicolas van Zeebroeck ()

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: What is the capacity of ICT to reduce the (geographical and technological) localization of knowledge? In this paper, we analyze the impact of Internet adoption within US firms on knowledge spillovers. More specifically, we investigate the impact of basic Internet access on the likelihood that patents invented at a given R&D establishment cite patents invented elsewhere within the same firm. Our findings suggest that adoption of Internet significantly fosters cross-location citations in a significant way, and that these effects are proportional to the technologically proximity of the establishments. This positive effect holds even when excluding collaborative patents or controlling for earlier collaborations, and suggests that Internet adoption has helped in reducing the spatial localization of knowledge but not in the ability to draw from new knowledge sources (i.e. across different technological areas).

Keywords: Geography of innovation; Internet adoption; IT investments; Knowledge spillovers; Patent citations; Technological proximity (search for similar items in EconPapers)
JEL-codes: L60 O30 O32 (search for similar items in EconPapers)
Date: 2015
Note: Conference paper presented at: European Conference on Information Systems(2015: 2015-05-27: Muenster, Germany)
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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/226245

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