An Examination of the Role of Local and Distant Knowledge Spillovers on the US Regional Knowledge Creation

Dongwoo Kang, Sandy Dall’erba

Research output: Research - peer-reviewArticle

Abstract

This article examines the role of academic and private R&D spending in the frame of a knowledge production function estimated across 3,109 US counties. We distinguish the role of local, face-to-face, knowledge spillovers that are determined by geographical proximity from distant spillovers captured by a matrix of patent creation–citation flows. The advantage of the latter matrix is its capacity to capture the direction of the spillovers. We control for the spatial heterogeneity between metropolitan and nonmetropolitan counties as well as between states. Our empirical results show that spillovers due to private knowledge contribute to higher returns in metropolitan counties than in nonmetropolitan regions. On the other hand, knowledge created in the academia leads to spillovers displaying spatially homogeneous returns. Our results imply that future innovation policies need to grasp more fully the role of distant knowledge spillovers, especially those generated in the academia, and recognize better the presence of heterogeneity in the sources and location of knowledge creation.

LanguageEnglish (US)
Pages355-385
Number of pages31
JournalInternational Regional Science Review
Volume39
Issue number4
DOIs
StatePublished - Oct 1 2016

Fingerprint

examination
knowledge
county
matrix
innovation policy
production function
knowledge production
patent
innovation
policy

Keywords

  • knowledge production function
  • knowledge spillovers
  • patent citation flows
  • spatial econometrics

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

Cite this

An Examination of the Role of Local and Distant Knowledge Spillovers on the US Regional Knowledge Creation. / Kang, Dongwoo; Dall’erba, Sandy.

In: International Regional Science Review, Vol. 39, No. 4, 01.10.2016, p. 355-385.

Research output: Research - peer-reviewArticle

@article{b1c3abb0ec61421e88d9cc2fbd028077,
title = "An Examination of the Role of Local and Distant Knowledge Spillovers on the US Regional Knowledge Creation",
abstract = "This article examines the role of academic and private R&D spending in the frame of a knowledge production function estimated across 3,109 US counties. We distinguish the role of local, face-to-face, knowledge spillovers that are determined by geographical proximity from distant spillovers captured by a matrix of patent creation–citation flows. The advantage of the latter matrix is its capacity to capture the direction of the spillovers. We control for the spatial heterogeneity between metropolitan and nonmetropolitan counties as well as between states. Our empirical results show that spillovers due to private knowledge contribute to higher returns in metropolitan counties than in nonmetropolitan regions. On the other hand, knowledge created in the academia leads to spillovers displaying spatially homogeneous returns. Our results imply that future innovation policies need to grasp more fully the role of distant knowledge spillovers, especially those generated in the academia, and recognize better the presence of heterogeneity in the sources and location of knowledge creation.",
keywords = "knowledge production function, knowledge spillovers, patent citation flows, spatial econometrics",
author = "Dongwoo Kang and Sandy Dall’erba",
year = "2016",
month = "10",
doi = "10.1177/0160017615572888",
volume = "39",
pages = "355--385",
journal = "International Regional Science Review",
issn = "0160-0176",
publisher = "SAGE Publications Inc.",
number = "4",

}

TY - JOUR

T1 - An Examination of the Role of Local and Distant Knowledge Spillovers on the US Regional Knowledge Creation

AU - Kang,Dongwoo

AU - Dall’erba,Sandy

PY - 2016/10/1

Y1 - 2016/10/1

N2 - This article examines the role of academic and private R&D spending in the frame of a knowledge production function estimated across 3,109 US counties. We distinguish the role of local, face-to-face, knowledge spillovers that are determined by geographical proximity from distant spillovers captured by a matrix of patent creation–citation flows. The advantage of the latter matrix is its capacity to capture the direction of the spillovers. We control for the spatial heterogeneity between metropolitan and nonmetropolitan counties as well as between states. Our empirical results show that spillovers due to private knowledge contribute to higher returns in metropolitan counties than in nonmetropolitan regions. On the other hand, knowledge created in the academia leads to spillovers displaying spatially homogeneous returns. Our results imply that future innovation policies need to grasp more fully the role of distant knowledge spillovers, especially those generated in the academia, and recognize better the presence of heterogeneity in the sources and location of knowledge creation.

AB - This article examines the role of academic and private R&D spending in the frame of a knowledge production function estimated across 3,109 US counties. We distinguish the role of local, face-to-face, knowledge spillovers that are determined by geographical proximity from distant spillovers captured by a matrix of patent creation–citation flows. The advantage of the latter matrix is its capacity to capture the direction of the spillovers. We control for the spatial heterogeneity between metropolitan and nonmetropolitan counties as well as between states. Our empirical results show that spillovers due to private knowledge contribute to higher returns in metropolitan counties than in nonmetropolitan regions. On the other hand, knowledge created in the academia leads to spillovers displaying spatially homogeneous returns. Our results imply that future innovation policies need to grasp more fully the role of distant knowledge spillovers, especially those generated in the academia, and recognize better the presence of heterogeneity in the sources and location of knowledge creation.

KW - knowledge production function

KW - knowledge spillovers

KW - patent citation flows

KW - spatial econometrics

UR - http://www.scopus.com/inward/record.url?scp=84985019759&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84985019759&partnerID=8YFLogxK

U2 - 10.1177/0160017615572888

DO - 10.1177/0160017615572888

M3 - Article

VL - 39

SP - 355

EP - 385

JO - International Regional Science Review

T2 - International Regional Science Review

JF - International Regional Science Review

SN - 0160-0176

IS - 4

ER -