Absorptive Capacity, Knowledge Flows and Innovation in US Metropolitan Areas

49 Pages Posted: 19 Jul 2011

See all articles by Jonathan Silberman

Jonathan Silberman

Oakland University

Nivedita Mukherji

Oakland University - School of Business Administration

Date Written: July 18, 2011

Abstract

High growth and progressive regions possess a culture that promotes innovation. Innovation depends on a region’s ability to use its own existing knowledge and knowledge generated elsewhere. This paper demonstrates the importance of the ability to absorb external knowledge in explaining innovation productivity for US metropolitan areas. Our measure of absorptive capacity, derived from a knowledge flow model, has a positive and significant impact on innovation productivity. We identify local conditions that shape a region’s absorptive capacity. We also contribute to the knowledge flow literature by providing a precise estimate of the geographical area within which knowledge generated in one region positively affects others, and showing that resistance to regional knowledge flows are influenced by the sizes of the regions.

Keywords: Innovation, absorptive capacity, knowledge flows, patents

JEL Classification: O30, O33, R10, R12

Suggested Citation

Silberman, Jonathan and Mukherji, Nivedita, Absorptive Capacity, Knowledge Flows and Innovation in US Metropolitan Areas (July 18, 2011). Available at SSRN: https://ssrn.com/abstract=1888506 or http://dx.doi.org/10.2139/ssrn.1888506

Jonathan Silberman (Contact Author)

Oakland University ( email )

Rochester, MI 48309-4401
United States

Nivedita Mukherji

Oakland University - School of Business Administration ( email )

Rochester, MI 48309-4401
United States
810-370-4087 (Phone)
810-370-4275 (Fax)

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