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Spillovers in space: does geography matter?

Lychagin, Sergey, Slade, Margaret E., Pinkse, Joris and Van Reenen, John ORCID: 0000-0001-9153-2907 (2016) Spillovers in space: does geography matter? Journal of Industrial Economics, 64 (2). 295 - 335. ISSN 0022-1821

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Identification Number: 10.1111/joie.12103


Using US firm level panel data we simultaneously assess the contributions to productivity of three potential sources of research and development spillovers: geographic, technological, and product market (“horizontal”). To do so, we construct new measures of geographic proximity based on the distribution of a firm’s inventor locations as well as its headquarters. We find that geographic location is important for productivity, perhaps dominating other spillover mechanisms, and that both intra– and inter–regional (counties) spillovers matter. The geographic location of a firm’s researchers is more important than its headquarters. These benefits may be the reason why local policy–makers compete so hard for the location of local R&D labs and high tech workers.

Item Type: Article
Official URL:
Additional Information: © 2016 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd
Divisions: Centre for Economic Performance
Subjects: G Geography. Anthropology. Recreation > G Geography (General)
JEL classification: C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited: 28 Jun 2016 15:54
Last Modified: 03 Jul 2024 20:45
Projects: ES/M010341/1, SES- 0922127
Funders: Economic and Social Research Council, National Science Foundation, Social Sciences and Humanities Research Council of Canada

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