Localized knowledge spillovers and patent citations: A distance-based approach

Yasusada Murata, Ryo Nakajima, Ryosuke Okamoto, Ryuichi Tamura

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)967-985
Number of pages19
JournalReview of Economics and Statistics
Volume96
Issue number5
DOIs
Publication statusPublished - 2014 Dec 1

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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