Knowledge spillovers from universities and other public research institutions (PRIs) are viewed as essential for innovation. Previous studies examining the impact of such spillovers have been confined to the West, and there are no comparable studies using empirical data from Japan that explore the relationship between spillovers from PRIs and innovation in firms. The author attempts to address this gap by using data from Japanese PRIs and new technology-based firms (NTBFs). He examines several topics: the evidence that knowledge spillovers from PRIs are localized in Japan; the extent to which such spillovers are contingent on geographical proximity; whether the type of tool used to measure spillovers – patents or scientific publications – has a bearing on the results; and the relationship between spillovers and innovation in Japanese NTBFs.
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