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Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations

Author

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  • Kristy Buzard
  • Gerald A. Carlino
  • Jake Carr
  • Robert M. Hunt
  • Tony E. Smith

Abstract

SUPERCEDES EORKING PAPER 17-32 Buzard et al. (2017) show that American R&D labs are highly spatially concentrated even within a given metropolitan area. We argue that the geography of their clusters is better suited for studying knowledge spillovers than are states, metropolitan areas, or other political or administrative boundaries that have predominantly been used in previous studies. In this paper, we assign patents and citations to these newly defined clusters of R&D labs. Our tests show that the localization of knowledge spillovers, as measured via patent citations, is strongest at small spatial scales and diminishes with distance. On average, patents within a cluster are about two to four times more likely to cite an inventor in the same cluster than one in a control group. Of import, we find that the degree of localization of knowledge spillovers will be understated in samples based on metropolitan area definitions compared to samples based on the R&D clusters. At the same time, the strength of knowledge spillovers varies widely between clusters. The results are robust to the specification of patent technological categories, the method of citation matching, and alternate cluster definitions.

Suggested Citation

  • Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2017. "Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations," Working Papers 19-42, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:19-42
    DOI: 10.21799/frbp.wp.2019.42
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    2. Georgios Tsiachtsiras & Deyun Yin & Ernest Miguelez & Rosina Moreno, 2022. ""Trains of Thought: High-Speed Rail and Innovation in China"," IREA Working Papers 202220, University of Barcelona, Research Institute of Applied Economics, revised Nov 2022.
    3. Benjamin Montmartin & Ludovic Dibiaggio & Lionel Nesta, 2018. "Regional Alignment and Productivity Growth," SciencePo Working papers Main halshs-01948337, HAL.
    4. Adelheid Holl & Bettina Peters & Christian Rammer, 2023. "Local knowledge spillovers and innovation persistence of firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(6), pages 826-850, August.
    5. Giuseppe Calignano, 2022. "Not all peripheries are the same: The importance of relative regional innovativeness in transnational innovation networks," Growth and Change, Wiley Blackwell, vol. 53(1), pages 276-312, March.
    6. Chattergoon, B. & Kerr, W.R., 2022. "Winner takes all? Tech clusters, population centers, and the spatial transformation of U.S. invention," Research Policy, Elsevier, vol. 51(2).
    7. repec:spo:wpmain:info:hdl:2441/32ctbi8fbq8j5aom2j69qam6tf is not listed on IDEAS
    8. Wonsang Ryu & Thomas H. Brush & Joonhyung Bae, 2023. "How agglomeration affects alliance governance and innovation performance: The role of cluster size," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 297-310, January.
    9. Pu Liu & Yingying Shao, 2022. "Innovation and new business formation: the role of innovative large firms," Small Business Economics, Springer, vol. 59(2), pages 691-720, August.
    10. repec:hal:spmain:info:hdl:2441/32ctbi8fbq8j5aom2j69qam6tf is not listed on IDEAS
    11. Zhai, Xueqi & An, Yunfei, 2021. "The relationship between technological innovation and green transformation efficiency in China: An empirical analysis using spatial panel data," Technology in Society, Elsevier, vol. 64(C).
    12. Sugam Agarwal & Smruti Ranjan Behera, 2022. "Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis," Indian Economic Review, Springer, vol. 57(2), pages 513-552, December.
    13. Xin Dai & Jie Tang & Qin Huang & Wenyue Cui, 2023. "Knowledge Spillover and Spatial Innovation Growth: Evidence from China’s Yangtze River Delta," Sustainability, MDPI, vol. 15(19), pages 1-26, September.
    14. Raquel Ortega-Argilés & Pei-Yu Yuan, 2024. "Do UK Research and Collaborations in R&I Promote Economic Prosperity and Levelling-up? An analysis of UKRI funding between 2004-2021," Working Papers 046, The Productivity Institute.

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    More about this item

    Keywords

    spatial clustering; geographic concentration; R&D labs; localized knowledge spillovers; patent citations;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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