Title : Patent Citations and Localization of Knowledge Spillovers: Evidence from Korea
Author : Jihong Lee(SNU), Yunmi Nam(BOK)
This paper studies localization effects of knowledge spillovers in Korea using US patents granted over the period 1996-2015. The “sample-matching” analysis initiated by Jaffe, Trajtenberg, and Henderson(1993) is adopted. We do not find evidence of positive localization effects in Korea. In particular, controlling for the existing geographic distribution of knowledge production, the frequency of domestic citations of Korean patents is no more than the citation frequency from overseas. We also examine localization effects across regions and industries. Our findings suggest a potential role for government policy aimed at promotion of positive innovation externalities within the Korean economy.