DP7928 Spillovers in Space: Does Geography Matter?
|Author(s):||Sergey Lychagin, Joris Pinkse, Margaret E. Slade, John Van Reenen|
|Publication Date:||July 2010|
|Keyword(s):||geographic proximity, R&D spillovers, semiparametric, technological proximity|
|JEL(s):||C23, L60, O33|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=7928|
We simultaneously assess the contributions to productivity of three sources of research and development spillovers: geographic, technology and product?market proximity. To do this, we construct a new measure of geographic proximity that is based on the distribution of a firm?s inventor locations rather than its headquarters, and we report both parametric and semiparametric estimates of our geographic?distance functions. We find that: i) Geographic space matters even after conditioning on horizontal and technological spillovers; ii) Technological proximity matters; iii) Product?market proximity is less important; iv) Locations of researchers are more important than headquarters but both have explanatory power; and v) Geographic markets are very local.