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

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

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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 R. Griffith, S. Lee and J. Van Reenen
Subjects: H Social Sciences > HB Economic Theory
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Date Deposited: 30 Apr 2008 14:36
Last Modified: 09 Aug 2013 08:21

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