RK NOWLEDGE T HE S PATIAL D IFFUSION OF rDNA M ETHODS Maryann P. Feldman UNC, Department of Public Policy Dieter F. Kogler UCD, School of Geography, Planning.

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rK NOWLEDGE T HE S PATIAL D IFFUSION OF rDNA M ETHODS Maryann P. Feldman UNC, Department of Public Policy Dieter F. Kogler UCD, School of Geography, Planning & Environmental Policy David L. Rigby UCLA, Departments of Geography & Statistics

RESEARCH OBJECTIVES To examine the spatial diffusion of a new technology across U.S. metropolitan areas To identify & measure the roles of cognitive proximity, social proximity & geographical proximity in the diffusion process

MOTIVATION Long history of geographical work on diffusion –Hagerstrand, Pred, Brown Renewed interest in the diffusion of knowledge connected to uneven development/regional economic growth (is knowledge fixed in space / how does it flow/does mobility reduce its value?) –Polanyi, Griliches, Gertler Debates over the relative roles of social proximity & spatial proximity in knowledge flow –Jaffe et al., Breschi & Lissoni, Boschma, Singh, Fischer et al.

OUTLINE rDNA technology: the Cohen-Boyer patent Diffusion of rDNA technology across U.S. cities A simple model of diffusion –Knowledge space & measures of cognitive proximity –Measuring the social proximity of cities –Measuring the spatial proximity of cities to rDNA Results Conclusion

RECOMBINANT DNA Cohen-Boyer patent –Stanley Cohen, Stanford –Herbert Boyer, UCSF Patent application – November 1974 Patent granted – December, 1980 Why the time lag? –Scientific moratorium – Asilomar Conference, 1975 –Supreme Court ruling – Diamond vs. Chakrabarty, 1980 –Bayh-Dole Act – December, 1980

THE OUTCOME Perhaps the most successful university technology licensing program –468 firms license technology from Stanford –Licensing revenues equal $255 million, from $35 billion in worldwide product sales –Fundamental technology jumpstarts biotechnology industry

rDNA PATENT APPLICATIONS & COUNTS OF MSAs WHERE INVENTORS RESIDE,

KEY CITIES OF rDNA INVENTION

A MODEL OF rDNA DIFFUSION Development of an rDNA patent = Function of: Geographical Proximity Social Proximity Cognitive Proximity some covariates

COGNITIVE PROXIMITY (to Cohen-Boyer) Cohen-Boyer is defined as a technological class (1 of 439) in patent records Have to find distances between technological classes –Look at patent co-classification –Use probability of co-classification to estimate inter-class distances Visualizations of technological classes & distance between them Cognitive proximity of a city to Cohen-Boyer given by average proximity (inverse distance) of all patents in the city to C-B (this not great?)

U.S. KNOWLEDGE SPACE 435/69.1 Chemicals Computers & Communic. Drugs & Medical Electronics Mechanical Miscellaneous 1980

U.S. KNOWLEDGE SPACE U.S. KNOWLEDGE SPACE 435/ Chemicals Computers & Communic. Drugs & Medical Electronics Mechanical Miscellaneous

U.S. KNOWLEDGE SPACE 435/ Chemicals Computers & Communic. Drugs & Medical Electronics Mechanical Miscellaneous

SOCIAL PROXIMITY (to C-B) 1.Construct annual lists of co- inventors on CB patents 2.Construct lists of co-inventors of CB co-inventors 1.366x366 matrix of MSAs 2.Populate with 0s 3.Add 1 to cells i & j when a pair of CB co-inventors is located in cities i & j 4.Add 0.5 to cells i & j when there is a non-CB co- inventor relationship in i & j 5.Find centrality of each city

GEOGRAPHICAL PROXIMITY (3 bites) 1.Take co-ords of each city & build distance matrix (366x366) 2.Row sum yields city proximity (inv. dist.) measure to other cities Bite 1 Bite 2 Multiply distance matrix for cities (366x366) by (366x1) vector of presence/ absence of CB in each city in each time period yields overall distance to Cohen-Boyer 0/1 (366x1) X City Access to C-B (366x1) = Bite 3 Take minimum distance measure to CB from Bite 2 (366x1)

RESULTS 1: Event History Model RESULTS 1: Event History Model Dependent variable is time (# years from 1980) to a city developing first C-B patent

RESULTS 2: Event History Model for Different Periods

Dependent variable – does city develops a C-B patent in year Model run with time-fixed effects RESULTS 3: FIXED EFFECTS PANEL LOGIT RESULTS 3: FIXED EFFECTS PANEL LOGIT

CONCLUSION From the hazard model, social proximity & cognitive proximity exert a positive & significant impact on the probability that a city develops a first Cohen-Boyer patent. Influence of geographical proximity mixed, reflecting changing nature of diffusion over time (first hierarchical, then epidemic) City-size and industry R&D have similar positive impacts, while increases in university R&D reduce the probability of a C-B patent?