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

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

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Identification Number: 818


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:
Additional Information: © 2007 the authors
Subjects: T Technology > T Technology (General)
H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Date Deposited: 19 Jul 2008 13:15
Last Modified: 01 Oct 2010 09:12

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