Spillovers in Space: Does Geography Matter?

39 Pages Posted: 19 Jul 2010 Last revised: 27 Mar 2022

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 Warwick - Department of Economics

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)

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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.

Suggested Citation

Lychagin, Sergey and Pinkse, Joris and Slade, Margaret E. and Van Reenen, John Michael and Van Reenen, John Michael, Spillovers in Space: Does Geography Matter? (July 2010). NBER Working Paper No. w16188, Available at SSRN: https://ssrn.com/abstract=1641565

Sergey Lychagin (Contact Author)

Central European University (CEU) ( email )

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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 )

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University Park, PA 16802-3306
United States
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Margaret E. Slade

University of Warwick - Department of Economics ( email )

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United Kingdom

John Michael Van Reenen

Stanford Graduate School of Business ( email )

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United States

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

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Institute for Fiscal Studies (IFS) ( email )

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Centre for Economic Policy Research (CEPR)

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