Is distance dying at last? Falling home bias in fixed effects models of patent citations

Griffith, Rachel, Lee, Sokbae and Van Reenen, John ORCID: 0000-0001-9153-2907 (2007) Is distance dying at last? Falling home bias in fixed effects models of patent citations. CEPDP (818). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853280750

Preview

PDF Download (694kB) | Preview

Abstract

We examine the “home bias” of international knowledge spillovers as measured by the speed of patent citations (i.e. knowledge spreads slowly over international boundaries). We present the first compelling econometric evidence that the geographical localization of knowledge spillovers has fallen over time, as we would expect from the dramatic fall in communication and travel costs. Our proposed estimator controls for correlated fixed effects and censoring in duration models and we apply it to data on over two million citations between 1975 and 1999. Home bias declines substantially when we control for fixed effects: there is practically no home bias for the more “modern” sectors such as pharmaceuticals and information/communication technologies.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2007 the authors
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
Date Deposited:	19 Jul 2008 13:15
Last Modified:	01 Nov 2024 04:52
URI:	http://eprints.lse.ac.uk/id/eprint/19695

Actions (login required)

View Item