Localization of Collaborations in Knowledge Creation

Author Name INOUE Hiroyasu (Osaka Sangyo University) / NAKAJIMA Kentaro (Tohoku University) / SAITO Yukiko (Fellow, RIETI)
Creation Date/NO. August 2013 13-E-070
Research Project Inter-organizational and Inter-inventors Geographical Proximity and Networks
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Revised: March 2015


This study investigates the localization of collaborative works in knowledge creation, using data on Japanese patent applications. Applying distance-based methods, we obtained the following results. First, collaborations are significantly localized at the 5% level, within a localization range of approximately 100km. Second, the extent of localization was stable during 1986-2005 despite extensive developments in information and communications technology that facilitate communication between remote organizations. Third, the extent of localization is substantially greater in inter-firm collaborations than in intra-firm collaborations. Furthermore, in inter-firm collaborations, the extent of localization is greater in collaborations with small firms. This suggests that geographic proximity mitigates firm-border effects in collaborations, especially for small firms.

Forthcoming: Inoue, Hiroyasu, Kentaro Nakajima, and Yukiko U. Saito. "Localization of collaborations in knowledge creation," The Annals of Regional Science.