Networks and Spillovers in Software in Israeli Hi-Tech

21 Pages Posted: 23 Jan 2019 Last revised: 4 Feb 2019

See all articles by Shani Cohen

Shani Cohen

affiliation not provided to SSRN

Neil Gandal

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

Date Written: January 2019

Abstract

A large literature has used patent data to measure knowledge spillovers across inventions but has not explicitly considered the collaboration networks formed by inventors as a mechanism for shaping these knowledge flows. Using a recently developed methodology, we examine the incidence and nature of knowledge flows mediated by the collaboration networks of inventors. We apply this methodology to three sectors in which programming skills are vital: (i) Information and Communication Technology/Information Security (ICT/IS) (ii) Financial Technology (Fin-Tech,) and (iii) Medical Technology (Med-Tech.) These are all areas of innovation in which Israel should have a comparative advantage.

We find the following: (I) the quality of the Israeli ICT/information security inventions is systematically linked to the structure of the collaborative network. In particular, we find positive and significant direct and indirect knowledge spillovers. (II) We find no evidence of such spillovers in either Fin-Tech or Med-Tech.

Suggested Citation

Cohen, Shani and Gandal, Neil, Networks and Spillovers in Software in Israeli Hi-Tech (January 2019). CEPR Discussion Paper No. DP13467. Available at SSRN: https://ssrn.com/abstract=3319788

Shani Cohen (Contact Author)

affiliation not provided to SSRN

No Address Available

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

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