you will use US patent data from the last century to investigate whether inventors living close to other creative individuals produce

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Exercise 1. In this exercise, you will use US patent data from the last century to investigate whether inventors living close to other creative individuals produce more knowledge spillovers than inventors living in greater isolation.

For this problem set you will use the Stata filepset5.dta provided on Datahub and on bCourses.

Note that several of the problems require you to produce custom summary statistics and regression tables. For more information on how to produce these types of tables, see the Coding Bootcamp Part 5 notebook posted on Datahub.

The dependent variable of interest is the occurrence of patent interferences (that occurs when two inventors file a very similar patent. Let the variable inter_pair= 0 or 1, where 1 means there was a similar patent filed in a certain geographic area in the US. You will use a linear probability model to compare the probability of interference between patent pairs above and below different co-location thresholds of inventors within 10, 50 and 100 miles. You will also estimate a logit specification, interpret marginal effects, and perform hypothesis testing. 

variable name    variable label

_________________________________________________________________

obs_id unique identifier

inter_pair =0 if no pair patent interference, =1 if interference

cites_shared number of shared citations in patent

num_cl_subcl_shared    number of subclasses shared by the pair of  inventors

match1m =1 if co-located with places of residences within 1 mile

match50m =1 if co-located with places of residences within 50 miles

match100m =1 if co-located with places of residences within 100 miles

1. What are the number of observations in the data? How many observations do we have with a pair patent interference and how many without a pair patent interference? 

2. Please rename the variable match1m asTreatment1. Rename the variable that indicates the fact that both individuals live within 50 miles to Treatment50. Summarize the averages and standard deviations of the percent occurrence of patent interferences and also of the number of shared citations by Treatment status, for Treatment1 and Treatment50. Do so by creating a table, Table 1,with four columns where the first two columns are for Treatment1=0 and Treatment1=1, and the next two columns for Treatment50=0 and =1. In rows 1 and 2 of summary stats, please provide the average and below it the standard deviation of inter_pair, then rows 3 and 4 the average and std dev of number of shared citations, and lastly in rows 5 and 6 the mean and std dev of the number of class and subclass shared.

 

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