Value of Knowledge Spillovers: Evidence from Patent Citations Data

This paper aims at quantifying the economic value of knowledge spillovers by exploring information contained in patent citations. The author estimates a market valuation equation for semiconductor firms during the 1980s and 1990s, and finds an average value in the amount of $0.6 to 1.2 million "R&D-equivalent" dollars for the knowledge spillovers as embodied in one patent citation.