TY - JOUR
T1 - Localized knowledge spillovers and patent citations
T2 - A distance-based approach
AU - Murata, Yasusada
AU - Nakajima, Ryo
AU - Okamoto, Ryosuke
AU - Tamura, Ryuichi
N1 - Publisher Copyright:
© 2014 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
PY - 2014/12/1
Y1 - 2014/12/1
N2 - 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.
AB - 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.
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U2 - 10.1162/REST_a_00422
DO - 10.1162/REST_a_00422
M3 - Article
AN - SCOPUS:84923006535
SN - 0034-6535
VL - 96
SP - 967
EP - 985
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 5
ER -