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Knowledge spillovers and patent citations: trends in geographic localization, 1976-2015

Authors: Hyuk-Soo Kwon , Jihong Lee , Sokbae (Simon) Lee and Ryungha Oh
Date: 06 December 2017
Type: cemmap Working Paper, CWP55/17
DOI: 10.1920/wp.cem.2017.5517


This paper examines the trends in geographic localization of knowledge spillovers via patent citations, considering US patents from the period of 1976-2015. Despite accelerating globalization and widespread  perception of the "death of distance," our multi-cohort "matched-sample" study reveals signi cant and growing localization effects of knowledge spillovers at both intra- and international levels after the 1980s. We also develop a novel network index based on the notion of "farness," which an instrumental variable estimation shows to be a signifi cant and sizable determinant of the observed trends at the state-sector level.

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