Template-Type: ReDIF-Paper 1.0
Author-Name: Georg von Graevenitz
Author-X-Name-First: Georg 
Author-X-Name-Last: von Graevenitz
Author-Email: g.v.graevenitz@qmul.ac.uk
Author-Workplace-Name: School of Business and Management, Queen Mary University of London.
Author-Name: Stuart J.H. Graham
Author-X-Name-First: Stuart J.H. 
Author-X-Name-Last: Graham
Author-Email: 
Author-Workplace-Name: Georgia Institute of Technology
Author-Name: Amanda Myers
Author-X-Name-First: Amanda
Author-X-Name-Last: Myers
Author-Email: 
Author-Workplace-Name: United States Patent & Trademark Office.
Title: Distance (Still) Hampers Diffusion of Innovations
Abstract: This paper introduces a new innovation data source to re-examine how spatial distance affects the diffusion of ideas and innovations in an economy. We exploit the descriptions of products and services
contained in U.S. trademark registrations during 1980-2012 to identify terms (tokens) not previously used by firms to describe products and services. From these we select tokens frequently re-used by
follower firms. By linking the new tokens to the business addresses of innovator and follower firms, our data encompass all instances in which innovations captured by trademark tokens arise within and diffuse
across the United States. We aggregate innovations at the year and ZIP code level and estimate Poisson models of the likelihood and intensity of diffusion between locations. After endogenising the creation
of new diffusion links between ZIP codes, our results show that spatial distance no longer affects the creation of diffusion links within the US after 1996. However, contingent on previous diffusion from a
sending to a receiving ZIP code, we find persistent, strong and negative effects of greater spatial distance on the intensity (extent) of diffusion for existing transfer links between locations within the US.
Length: 24 pages
Creation-Date: 2019-08
Revision-Date: 
Publication-Status: 
Classification-JEL: O3, O51, R1, R32
Keywords: Innovation, Diffusion, Rate of Diffusion, Distance, Innovation Index, Trademarks, Patents  
File-URL: http://cgr.sbm.qmul.ac.uk/CGRWP98.pdf
Number: 98
Handle: RePEc:cgs:wpaper:98