LOCALIZED KNOWLEDGE SPILLOVERS AND PATENT CITATIONS: A DISTANCE-BASED APPROACH

We develop a new distance-based test of localized knowledge spillovers that embeds the concept of control patents. Using microgeographic data, we identify localization distance for each technology class while allowing for spillovers across geographic units. We revisit the debate between Thompson and...

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Bibliographic Details
Published inThe review of economics and statistics Vol. 96; no. 5; pp. 967 - 985
Main Authors Murata, Yasusada, Nakajima, Ryo, Okamoto, Ryosuke, Tamura, Ryuichi
Format Journal Article
LanguageEnglish
Published Cambridge The MIT Press 01.12.2014
MIT Press Journals, The
Subjects
Aggregation
Bias
Censuses
Contrafactuals
Geography
Hexagons
Information sharing
Knowledge
Knowledge management
Localization
Perceptual localization
Sensitivity analysis
Spillovers
Studies
Technology
Timed tests
Vertices
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Summary:We develop a new distance-based test of localized knowledge spillovers that embeds the concept of control patents. Using microgeographic data, we identify localization distance for each technology class while allowing for spillovers across geographic units. We revisit the debate between Thompson and Fox-Kean (2005a, 2005b) and Henderson, Jaffe, and Trajtenberg (2005) on the existence of localized knowledge spillovers and find solid evidence supporting localization even when using finely grained controls. Unless biases induced by imperfect matching between citing and control patents due to unobserved heterogeneity are extremely large, our distance-based test detects localization for the majority of technology classes.
Bibliography:December, 2014
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ISSN:0034-6535
1530-9142
DOI:10.1162/rest_a_00422