It?s a Small(er) World: The Role of Geography and Networks in Biotechnology Innovation

Using patent citation data for the U.S., we test whether knowledge spillovers in biotechnology are sensitive to distance. Controlling for self-citation by inventor, assignee and examiner, cohort-based regression analysis shows that spillovers are local but that distance is becoming less important with time. Network analysis paints a picture of a stable network between states, but a changing environment between individual actors, with a growing importance of connectedness. The popular maxim that everyone is connected by six degrees of separation is tested with surprising results. JEL codes: L6 --Industry Studies: Manufacturing N9 --Regional and Urban History O3 --Technological Change R1 --Urban, Rural and Regional Economics It’s a Small(er) World: The Role of Geography and Networks in Biotechnology Innovation

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