Local geographic spillovers between university research and high technology innovations

This paper re-examines the empirical evidence on the degree of spatial spillover between university research and high technology innovations. The familiar Griliches-Jaffe knowledge production function is estimated at both the state and the metropolitan statistical areas (MSA) level and extended with more precise measures of spatial spillover. Alternatives based on the gravity potential and covering indices are formulated for Jaffe's ''geographical coincidence index'' and found to provide strong evidence of local spillovers at the state level. At the MSA level, a distinction is made between research and development activities and university research in the MSA and in the surrounding counties. Evidence is found of local spatial externalities between university research and high technology innovative activity, both directly and indirectly via private research and development. (C) 1997 Academic Press.