Spillovers in Space: Does Geography Matter?

By Sergey Lychagin, Joris Pinkse, Margaret E. Slade, John Van Reenen. 2016

188 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/fec82a664fae0b17e27879d46daa6b6a0c8629cb

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In Economics and Econometrics

Citations in the corpus

Knowledge Spillovers in the Supply Chain: Evidence from the High Tech Sectors (2015, background): “Correspondingly, survey evidence suggests that downstream partners are an important information source for innovation (Cohen et al., 2002; Belderbos et al., 2004).”
Corporate Innovation Along the Supply Chain (2018, unknown): “We verify that our baseline results are robust to using alternative proximity measures, such as the inventor-location based distance (Lychagin et al. 2016), the shortest point-to-point traveling time (Catalini et al. 2016, Giroud 2013), and a binary distance measure 3 which is designed to capture…”
What Can Be Learned from Spatial Economics? (2019, unknown): “Different works point in the same direction, i.e., the spatial extent of knowledge spillovers is often limited (Arzaghi and Henderson 2008, Belenzon and Schankerman 2013, Buzard et al. 2017).4 Furthermore, spillovers are as local in the 1990s as they were in the 1980s (Lychagin et al. 2016).”