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Journal of Economic Geography Advance Access originally published online on December 12, 2008
Journal of Economic Geography 2009 9(3):405-431; doi:10.1093/jeg/lbn049
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© The Author (2008). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Localized sources of knowledge and the effect of knowledge spillovers: an empirical study of inventors in the telecommunications industry

Sherwat E. Ibrahim*, M. Hosein Fallah**,{dagger} and Richard R. Reilly**

*School of Business, Economics and Communication, American University in Cairo, Cairo 11511, Egypt.
**School of Technology Management, Stevens Institute of Technology, Hoboken, NJ 07030, USA.

{dagger}Corresponding author: email <hfallah{at}stevens.edu>

JEL classifications: R12, R11

Knowledge spillovers have been considered a major driver for the increased rate of innovation in technological clusters. In this study, we respond to some recent calls for a deeper understanding of the mechanisms of localized knowledge exchange, by focusing on the effect of local sources of knowledge on inventors in telecommunication clusters. We differentiate between the different types of knowledge in our model for knowledge accessibility, and present a framework for knowledge exchange within clusters. We empirically test this model on inventors across the USA, where we compare the responses of inventors in clusters to inventors who are not in clusters. The results highlight the significance of the ‘local buzz’, and the dynamics of knowledge spillovers are explored.

Keywords: localization, knowledge spillover, sources of knowledge, geography of innovation, tacit knowledge
Date submitted: 20 April 2007     Date accepted: 14 November 2008


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