Localization of knowledge and the mobility of engineers in regional networks

Localization of knowledge and the mobility of engineers in regional networks

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Article ID: iaor20002609
Country: United States
Volume: 45
Issue: 7
Start Page Number: 905
End Page Number: 917
Publication Date: Jul 1999
Journal: Management Science
Authors: ,
Keywords: research, education
Abstract:

Knowledge, once generated, spills only imperfectly among firms and nations. We posit that since institutions and labor networks vary by region, there should be regional variations in the localization of spillovers. We investigate the relationship between the mobility of major patent holders and the localization of technological knowledge through the analysis of patent citations of important semiconductor innovations. We find that knowledge localization is specific to only certain regions (particularly Silcon Valley) and that the degree of localization varies across regions. By analyzing data on the interfirm mobility of patent holders, we empirically show that the interfirm mobility of engineers influences the local transfer of knowledge. The flow of knowledge is embedded in regional labor networks.

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