Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations

48 Pages Posted: 27 Nov 2019

See all articles by Kristy Buzard

Kristy Buzard

Syracuse University - Department of Economics

Gerald A. Carlino

Federal Reserve Bank of Philadelphia

Robert M. Hunt

Consumer Finance Institute, Federal Reserve Bank of Philadelphia

Jake Carr

Center for Urban and Regional Analysis

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering

Multiple version iconThere are 2 versions of this paper

Date Written: 2017-09-01

Abstract

SUPERCEDES EORKING PAPER 17-32 Buzard et al. (2017) show that American R&D labs are highly spatially concentrated even within a given metropolitan area. We argue that the geography of their clusters is better suited for studying knowledge spillovers than are states, metropolitan areas, or other political or administrative boundaries that have predominantly been used in previous studies. In this paper, we assign patents and citations to these newly defined clusters of R&D labs. Our tests show that the localization of knowledge spillovers, as measured via patent citations, is strongest at small spatial scales and diminishes with distance. On average, patents within a cluster are about two to four times more likely to cite an inventor in the same cluster than one in a control group. Of import, we find that the degree of localization of knowledge spillovers will be understated in samples based on metropolitan area definitions compared to samples based on the R&D clusters. At the same time, the strength of knowledge spillovers varies widely between clusters. The results are robust to the specification of patent technological categories, the method of citation matching, and alternate cluster definitions.

Keywords: apatial clustering, geographic concentration, R&D labs, localized knowledge spillovers, patent citations

JEL Classification: O31, R12

Suggested Citation

Buzard, Kristy and Carlino, Gerald A. and Hunt, Robert M. and Carr, Jake and Smith, Tony E., Localized Knowledge Spillovers: Evidence from the Spatial Clustering of R&D Labs and Patent Citations (2017-09-01). Available at SSRN: https://ssrn.com/abstract=3494155 or http://dx.doi.org/10.21799/frbp.wp.2019.42

Kristy Buzard (Contact Author)

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

HOME PAGE: http://faculty.maxwell.syr.edu/kbuzard

Gerald A. Carlino

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-6434 (Phone)
215-574-4364 (Fax)

Robert M. Hunt

Consumer Finance Institute, Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-3806 (Phone)
215-574-7101 (Fax)

Jake Carr

Center for Urban and Regional Analysis ( email )

0126 Derby Hall
154 North Oval Mall
Columbus, OH 43210
United States

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering ( email )

School of Engineering & Applied Science
3718 Locust Walk
Philadelphia, PA 19104
United States
215-898-9647 (Phone)
215-898-5020 (Fax)

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