The increasing importance of geographical proximity in knowledge production: an analysis of US patent citations, 1975-1997

Much literature suggests that knowledge-production activities are still heavily dependent upon geographically proximate sources of information, in spite of rapid development in telecommunications technology. Some analysts believe that the importance of proximity in knowledge production will eventually disappear with the continued development of telecommunications. The authors analyse patent citations and find that, after controlling for the existing distribution of knowledge-production activities, the proportion of local citations has increased over time. This finding reinforces the notion that in contemporary knowledge production and innovation the role for geographical proximity is increasing.