Knowledge spillover

[4] A recent, general example of a knowledge spillover could be the collective growth associated with the research and development of online social networking tools like Facebook, YouTube, and Twitter.

[1] Many semiconductor firms intentionally located their research and development facilities in Silicon Valley to take advantage of MAR spillover.

[1] 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 aspects of movie-making into a final product.

[6] Porter (1990), like MAR, argues that knowledge spillovers in specialized, geographically concentrated industries stimulate growth.

[1] Developed in 1969 by urbanist Jane Jacobs and John Jackson[7] the concept 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 gasoline engine firms easily transitioned from building gasoline engines for ships to building them for automobiles.

[8] Cassiman and Veugelers (2002) use survey data and estimate incoming and outgoing spillover and study the economic impacts.

Chen et al. (2013) use econometric method to gauge incoming spillover, a way that applies for all companies without survey.

As a result, the concept of intellectual property rights have developed and ensure the ability of entrepreneurs to temporarily hold on to the profitability of their ideas through patents, copyrights, trade secrets, and other governmental safeguards.

Conversely, such barriers to entry prevent the exploitation of informational developments by rival firms within an industry.