Tacit knowledge, localization push, and diffusion of science: Evidence from Singapore

Abstract

We propose localization push, as an alternative to tacit knowledge, to explain the localization of knowledge diffusion. Sponsors of scientific research enact policies and create institutions for locally-produced knowledge spillovers. We hypothesize that localization necessitated by tacit knowledge renders the local diffusion of such knowledge more productive than distant commercialization. However, this is not the case when the localization push is the primary reason for the localization. We empirically investigate the hypothesis using data on knowledge diffusion in SingaporeOur main findings are as follows: (1) The diffusion of basic research, measured by journal articles cited in patents, is localized, but this is almost exclusively accounted for by Singaporean public institutions; (2) Local patents citing papers authored by Singaporeans are less significant than foreign patents citing such papers; and (3) Singaporean public patent applicants are more willing to seek multijurisdiction patent protection despite the ineffectiveness of their commercialization efforts.