Measuring R&D Spillovers: On the Importance of Geographic and Technological Proximity

Federal Reserve Bank of Kansas City Research Working Paper No. 02-06

16 Pages Posted: 22 Apr 2003  

Michael J. Orlando

Econ One Research, Inc.; University of Colorado - Denver

Date Written: September 2002

Abstract

Evidence is presented which suggest that an important measure of the apparent geographic localization of R&D spillovers may be an artifact of industrial agglomeration. A production function framework is used to examine the role of geographic and technological proximity for inter-firm spillovers from R&D. The largest spillovers are found to flow between firms in the same industry. However, spillovers within narrowly defined technological groups do not appear to be attenuated by distance. Geographic proximity does appear to attenuate spillovers that cross narrowly defined technological boundaries, suggesting these spillovers may play a role in the agglomeration of a diversity of industrial activity.

JEL Classification: O3, R1, L6

Suggested Citation

Orlando, Michael J., Measuring R&D Spillovers: On the Importance of Geographic and Technological Proximity (September 2002). Federal Reserve Bank of Kansas City Research Working Paper No. 02-06. Available at SSRN: https://ssrn.com/abstract=387840 or http://dx.doi.org/10.2139/ssrn.387840

Michael J. Orlando (Contact Author)

Econ One Research, Inc. ( email )

United States

University of Colorado - Denver ( email )

1475 Lawrence St.
Suite 4001
Denver, CO 80202
United States

HOME PAGE: http://www.ucdenver.edu/academics/colleges/business/degrees/ms/gem/Pages/faculty.aspx

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