The patterns of knowledge spillovers across technology sectors evidenced in patent citation networks

Abstract

The innovation literature often argues that major inventions arise through the cumulative synthesis of existing components and principles. An important economic phenomenon associated with this argument is the knowledge spillover. Although increasing attention has been paid to knowledge spillovers as a means to grasp innovation, little is known about its structural characteristics. This study examines the structural patterns of knowledge flow evidenced in patent citations by focusing on two aspects: the reciprocity of citations between technology sectors and the concentration of citing and cited sectors. The results indicate that the knowledge flow tends to be highly reciprocal within pairs of technology sectors instead of having a clear direction and that there are relatively low inflow and outflow concentrations in most sectors, although there are some exceptions. These results suggest that most technological sectors become both a knowledge provider and a knowledge consumer at the same time and they coevolve with reciprocal knowledge exchanges with each other.