In Search of New Knowledge: Its Origins and Destinations

Abstract

Examining technology flow patterns is the first step for spillover research. Drawing on patent and citation records from the U.S. Patent and Trademark Office, this article develops technology flow matrices among regions and industries. The examination of a regional technology flow matrix reveals California's dominant position in new knowledge creation. It also shows that disproportionately large technology flows exist among inventors located in the same state, which strongly implies the presence of localization of technology spillovers. The industry-by-industry technology flow matrix illustrates the importance of two industry groups in knowledge creation: Professional and Scientific Instruments (Standard Industrial Classification [SIC] 38, except 3825) and Electronic Components, Accessories, and Communication Equipment (SIC 366, 367). New technology flow matrices derived in this article have important implications for spillover research and technology policy.