Geographic and sectoral characteristics of academic knowledge externalities

This note implements a novel approach to formalizing spatial externalities by employing spatial econometric methods that combine spatial dependence in the form of spatial autoregressive processes and spatial heterogeneity in the form of spatial regimes. The results confirm earlier findings that academic externalities are not uniform across sectors but also indicate important differences across sectors in terms of agglomeration effects. JEL classification: O31, H41, O40.