Spillovers in Space: Does Geography Matter?

41 Pages Posted: 19 Jul 2010

See all articles by Sergey Lychagin

Sergey Lychagin

Central European University (CEU)

Joris Pinkse

Pennsylvania State University, College of the Liberal Arts - Department of Economic

Margaret E. Slade

University of British Columbia (UBC)

John Van Reenen

London School of Economics - Centre for Economic Performance (CEP); Stanford Graduate School of Business; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: July 2010

Abstract

We simultaneously assess the contributions to productivity of three sources of research and development spillovers: geographic, technology and product -market proximity. To do this, we construct a new measure of geographic proximity that is based on the distribution of a firm's inventor locations rather than its headquarters, and we report both parametric and semiparametric estimates of our geographic- distance functions. We find that: i) Geographic space matters even after conditioning on horizontal and technological spillovers; ii) Technological proximity matters; iii) Product -market proximity is less important; iv) Locations of researchers are more important than headquarters but both have explanatory power; and v) Geographic markets are very local.

Keywords: geographic proximity, R&D spillovers, semiparametric, technological proximity

JEL Classification: C23, L60, O33

Suggested Citation

Lychagin, Sergey and Pinkse, Joris and Slade, Margaret E. and Van Reenen, John Michael, Spillovers in Space: Does Geography Matter? (July 2010). CEPR Discussion Paper No. DP7928. Available at SSRN: https://ssrn.com/abstract=1641003

Sergey Lychagin (Contact Author)

Central European University (CEU) ( email )

Nador utca 9
Budapest, H-1051
Hungary

HOME PAGE: http://www.personal.ceu.hu/staff/Sergey_Lychagin/

Joris Pinkse

Pennsylvania State University, College of the Liberal Arts - Department of Economic ( email )

608 Kern Graduate Building
University Park, PA 16802-3306
United States
814-863-0508 (Phone)
814-863-4775 (Fax)

Margaret E. Slade

University of British Columbia (UBC) ( email )

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Canada

John Michael Van Reenen

London School of Economics - Centre for Economic Performance (CEP) ( email )

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United Kingdom
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+44 20 7955 6848 (Fax)

Stanford Graduate School of Business ( email )

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Institute for Fiscal Studies (IFS) ( email )

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

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