Knowledge spillover

Knowledge spillover is an exchange of ideas among individuals.Carlino, Gerald A. (2001) Business Review " [http://www.philadelphiafed.org/files/br/brq401gc.pdf Knowledge Spillovers: Cities' Role in the New Economy.] " Q4 2001.] In knowledge management economics, a knowledge spillover is a non-rival knowledge market externality that has a spillover effect of stimulating technological improvements in a neighbor through one's own innovation. [Jaffe, Adam B.; Trajtenberg, Manuel; Fogarty, Michael S. (May, 2000) The American Economic Review " [http://www.nber.org/sloan/jaffe.html Knowledge Spillovers and Patent Citations:Evidence from a Survey of Inventors.] " Vol. 90, No. 2, Papers and Proceedings of the One Hundred Twelfth Annual Meeting of the American Economic Association, pp. 215-218.] A knowledge spillover is an internal knowledge spillover if there is a positive impact of knowledge between individuals an organization that produces goods and/or services. A knowledge spillover is an external knowledge spillover if there is a positive impact of knowledge between individuals or outside of a production organization. MAR spillovers and Jacobs spillovers are two types of spillovers.

MAR spillover

Under the MAR spillover view, the proximity of firms in the same, industry to each other affects how well knowledge travels among firms to facilitate innovation and growth. The closer to the firms are to one another, the greater the MAR spillover. The exchange of ideas largely is from employee to employee in that employees from different firms in an industry exchange ideas about new products and new ways to produce goods. The opportunity to exchange ideas that lead to key innovations where employees in a common industry in a given location are stationed closed to one another. Business parks are an example concentrated business that may benefit from MAR spillover. Many semiconductor firms intentionally located their research and development facilities in Silicon Valley to take advantage of MAR spillover. In addition, the film industry in Los Angeles, California and elsewhere relies on a geographic concentration of specialists (directors, producers, scriptwriters, and set designers) to bring together narrow aspect of movie-making into a final movie product.

MAR spillover has its origins in 1890, where influential English economist Alfred Marshall developed a theory of knowledge spillovers. Knowledge spillovers later were extended by economists Kenneth Arrow and Paul Romer. In 1992, Edward Glaeser, Hedi Kallal, Jose Scheinkman, and Andrei Shleifer pulled together theMarshall-Arrow-Glaeser views on knowledge spillovers and named the view MAR spillover in 1992.

Jacobs spillover

Under the Jacobs spillover view, the proximity of firms in different, industry to each other affects how well knowledge travels among firms to facilitate innovation and growth. This is in contrast to MAR spillovers, which focus on firms in a common industry. The diverse proximity of a Jacobs spillover brings together ideas among individuals with different perspectives to encourages an exchange of ideas and foster innovation in an industrially diverse urban environment. Developed in 1969 by economist Jane Jacobs, both Jane Jacobs and economist John Jackson noted that Detroit’s shipbuilding industry from the 1830s was the critical antecedent leading to the 1890s development of the auto industry in Detroit since the ship gasoline engine firms easily transitioned into building gasoline engines for automobiles.

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