Spillovers in Space: Does Geography Matter?

Sergey Lychagin, Joris Pinkse, Margaret E. Slade, John Van Reenen

Research output: Contribution to journalArticlepeer-review

66 Scopus citations


Using U.S. firm level panel data we simultaneously assess the contributions to productivity of three potential sources of research and development spillovers: geographic, technological, and product market ("horizontal"). To do so, we construct new measures of geographic proximity based on the distribution of a firm's inventor locations as well as its headquarters. We find that geographic location is important for productivity, as are technology (but not product) spillovers, and that both intra and inter-regional (counties) spillovers matter. The geographic location of a firm's researchers is more important than its headquarters. These benefits may be the reason why local policy makers compete so hard for the location of local R&D labs and high tech workers.

Original languageEnglish (US)
Pages (from-to)295-335
Number of pages41
JournalJournal of Industrial Economics
Issue number2
StatePublished - Jun 1 2016

All Science Journal Classification (ASJC) codes

  • Accounting
  • General Business, Management and Accounting
  • Economics and Econometrics


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