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Technological convergence among US regions and states

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This paper employs unit root tests that allow for two endogenously determined structural breaks to study whether or not invention activities are converging across US regions/states. Using US patent data from 1929 to 1997, we find technological -convergence in six of the nine Census regions, in 11 of the 14 leading states and in 28 of the 34 lagging states. Stochastic convergence, on the other hand, is found in three regions, in four leading states and in 17 lagging states. Carlino and Mills (1993) point out that both - and stochastic convergence are necessary conditions for convergence. Putting these results together, we find convergence (both - and stochastic) in invention activities in three regions, in three leading states and in 16 lagging states.
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Keywords: Patent; Stochastic convergence; US regions and states; Unit root test; -Convergence

Document Type: Research Article

Publication date: March 1, 2004

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