Abstract: What is the capacity of ICT to reduce the (geographical and technological) localization of knowledge? In this paper, we analyze the impact of Internet adoption within US firms on knowledge spillovers. More specifically, we investigate the impact of basic Internet access on the likelihood that patents invented at a given R&D establishment cite patents invented elsewhere within the same firm. Our findings suggest that adoption of Internet significantly fosters cross-location citations in a significant way, and that these effects are proportional to the technologically proximity of the establishments. This positive effect holds even when excluding collaborative patents or controlling for earlier collaborations, and suggests that Internet adoption has helped in reducing the spatial localization of knowledge but not in the ability to draw from new knowledge sources (i.e., across different technological areas).
“Internet Adoption & Knowledge Diffusion” by Chris Forman and Nicolas van Zeebroeck (preliminary and incomplete paper)
A buffet lunch will be available at 11:45 a.m. The talk will begin at 12:00 p.m.
Chris is the Peter and Stephanie Nolan Professor of Strategy, Innovation, and Technology at Cornell University, Dyson School of Applied Economics & Management.