GEOGRAPHICALLY LOCALIZED KNOWLEDGE: SPILLOVERS OR MARKETS?

Using detailed data on California biotechnology, we find that the positive impact of research universities on nearby firms relates to identifiable market exchange between particular university star scientists and firms and not to generalized knowledge spillovers. Poisson and two‐stage Heckman regres...

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Bibliographic Details
Published in:Economic inquiry 1998-01, Vol.36 (1), p.65-86
Main Authors: ZUCKER, LYNNE G., DARBY, MICHAEL R., ARMSTRONG, JEFF
Format: Article
Language:English
Subjects:
Astronomers
Biochemistry
Biotechnology
Biotechnology industry
California
Colleges & universities
Economic theory
Employment
Industrial productivity
Knowledge
Laboratories
Location analysis
Methods
Practice
Product development
Productivity
Regression analysis
Relational data bases
Science
Scientists
Studies
Success
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Summary:Using detailed data on California biotechnology, we find that the positive impact of research universities on nearby firms relates to identifiable market exchange between particular university star scientists and firms and not to generalized knowledge spillovers. Poisson and two‐stage Heckman regressions indicate the number of star‐firm collaborations powerfully predicts success: for an average firm, five articles coauthored by academic stars and the firm's scientists imply about five more products in development, 3.5 more products on the market, and 860 more employees. Stars collaborating with or employed by firms, or who patent, have significantly higher citation rates than pure academic stars. (JEL O31, D62, L65, L66)
ISSN:0095-2583
1465-7295
DOI:10.1111/j.1465-7295.1998.tb01696.x