The Geographic Reach of Market and Non – Market Channels of University Research Commercialization

This paper compares the geographic “reach” of knowledge flows from university inventions through two important channels: market contracts (licenses) and non–market “spillovers” exemplified by patent citations. We find that knowledge flows through market transactions to be more geographically localized than those operating through non–market spillovers. Moreover, the differential effects of distance on licenses and citations are most pronounced for exclusively licensed university patents. We interpret these findings as reflecting the incomplete nature of licensing contracts and the need for licensees to maintain access to inventor know– how for many university inventions. Such access appears to be less important for inventions that are non–exclusively licensed (e.g. “research tools”). JEL Classifications: O31, O32, R12

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