Tacit Knowledge, Localization Push, and Diffusion of Science: The Case of Singapore

Abstract

Tacit knowledge has been cited to explain the widely documented localization of scientific knowledge. We argue that an alternative explanation could be the localization push, which involves sponsors of scientific research enacting policies and creating institutions for locally produced knowledge spillovers. Our key hypothesis is that localization necessitated by the involvement of tacit knowledge renders the local diffusion of such knowledge more productive than distant commercialization. However, in the absence of tacit knowledge, the localization push-generated local knowledge diffusion does not necessarily have a productivity advantage. We consider the diffusion of basic research conducted in Singapore to investigate the hypothesis. Our main findings are as follows: (1) The diffusion of basic research, measured by journal articles cited by the US Patent and Trademark Office patents, is localized, but this is almost exclusively accounted for by Singaporean public institutions that tend to disproportionately cite papers authored by Singaporeans. (2) When we use patent citation-based measures for the performance of commercialization, local patents citing papers authored by Singaporeans are less significant than foreign patents citing such papers. (3) Singaporean public patent applicants are more willing to seek multi-jurisdiction patent protection despite the ineffectiveness of their commercialization efforts.