The Geographic Reach of Market and Non-Market Channels of Technology Transfer: Comparing Citations and Licenses of University Patents

40 Pages Posted: 25 Oct 2001 Last revised: 1 Dec 2022

See all articles by David C. Mowery

David C. Mowery

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Arvids A. Ziedonis

Boston University - Department of Strategy & Policy; KU Leuven - Faculty of Economics and Business

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Date Written: October 2001

Abstract

The growth of high-technology clusters in the United States suggests the presence of strong regional agglomeration effects that reflect proximity to universities or other research institutions. Using data on licensed patents from the University of California, Stanford University, and Columbia University, this paper compares the geographic 'reach' of knowledge flows from university inventions through two important channels: non-market 'spillovers' exemplified by patent citations and market contracts (licenses). We find that knowledge flows through market transactions to be more geographically localized than those operating through non-market 'spillovers.' Moreover, the differential effects of distance on licenses and citations are most pronounced for exclusively licensed university patents. We interpret these findings as reflecting the incomplete nature of licensing contracts and the need for licensees to maintain access to inventor know-how for many university inventions. Such access appears to be less important for inventions that are non-exclusively licensed (e.g. 'research tools').

Suggested Citation

Mowery, David C. and Ziedonis, Arvids Alexander, The Geographic Reach of Market and Non-Market Channels of Technology Transfer: Comparing Citations and Licenses of University Patents (October 2001). NBER Working Paper No. w8568, Available at SSRN: https://ssrn.com/abstract=288481

David C. Mowery

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Arvids Alexander Ziedonis (Contact Author)

Boston University - Department of Strategy & Policy ( email )

Questrom School of Business
595 Commonwealth Avenue
Boston, MA 02215
United States

KU Leuven - Faculty of Economics and Business ( email )

Warmoesberg 26
Brussels, 1000
Belgium

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