Network-Mediated Knowledge Spillovers: A Cross-Country Comparative Analysis of Information Security Innovations

46 Pages Posted: 11 Sep 2017

See all articles by Lee Branstetter

Lee Branstetter

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management; National Bureau of Economic Research (NBER)

Neil Gandal

Berglas School of Economics, Tel Aviv University; Centre for Economic Policy Research (CEPR)

Nadav Kunievsky

Tel Aviv University

Multiple version iconThere are 2 versions of this paper

Date Written: September 2017

Abstract

A large and growing literature has used patent and patent citation data to measure knowledge spillovers across inventions and organizations, but relatively few papers in this literature have explicitly considered the collaboration networks formed by inventors as a mechanism for shaping and transmitting these knowledge flows. This paper utilizes an approach developed by Fershtman and Gandal (FG 2011) (and applied to Open Source Software) to examine the incidence and nature of knowledge flows mediated by the collaboration networks of inventors active in the information security industry. This is an industry in which a number of nations outside the United States, including Israel, have emerged as important centers of innovation. Israeli prominence in this sector is often attributed, in part, to a dense network of personal collections and collaborations that has its genesis in elite intelligence units in the Israeli Defense Forces, through which many Israeli information security inventors and entrepreneurs receive their first exposure to this domain. Using data from U.S. PTO patent grants in information security, we find that the quality of Israeli information security inventions is systematically linked to the structure of the collaborative network generated by Israeli inventors in this sector. Using the FG (2011) model, this suggests that there are knowledge spillovers from the network. In some other nations, invention quality is less closely linked to the collaboration networks of inventors. This research highlights the importance of direct interaction among inventors as a conduit for flows of frontier scientific knowledge.

Keywords: Information Security, Knowledge Spillovers, patents

JEL Classification: O31, O33, O57

Suggested Citation

Branstetter, Lee and Gandal, Neil and Kunievsky, Nadav, Network-Mediated Knowledge Spillovers: A Cross-Country Comparative Analysis of Information Security Innovations (September 2017). CEPR Discussion Paper No. DP12268. Available at SSRN: https://ssrn.com/abstract=3035262

Lee Branstetter (Contact Author)

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Neil Gandal

Berglas School of Economics, Tel Aviv University ( email )

Tel Aviv University
Tel Aviv 69978
Israel
+972 3 640 9907 (Phone)
+972 3 640 9908 (Fax)

HOME PAGE: http://www.neilgandal.com/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Nadav Kunievsky

Tel Aviv University ( email )

Ramat Aviv
Tel-Aviv, 6997801
Israel

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