The chicken-and-egg problem between localized knowledge spillovers and thespatial concentration of inventive activities makes it difficult to identify how proximity affects knowledge spillovers. Using sudden changes in travel time following the introduction of new flight routes, we identify that...

This paper studies the causal relationship between proximity and knowledge diffusion by exploiting sudden changes in travel time following the introduction of new flight routes. We find that decreasing travel time between U.S. cities by 20% increases knowledge flow by 0.5%, which corresponds to...

We analyze the diffusion and integration of external knowledge by distinguishing between the depth and breadth of technological knowledge in combination with the type of partner and channel of exchange. Using a latent variable structural equation model with a sample of 202 US biotechnology firms...

We examine the organizational choice and innovative activity of technology conglomerates—firms that explore different technology fields with heated inventive activity. We develop a measure of firm-to-economy technological proximity to capture the extent of a firm's technology conglomeration....