Science Is Golden: Academic R&D and University Patents

Many studies have shown indirect effects of academic research by linking academic research to firm patents. However, since the Bayh-Dole Act, universities are allowed to patent inventions that were funded by federal money and to retain the royalties that these patents generate. As a consequence, universities now are interested in protecting their profitable discoveries, just like any commercial firm doing R&D. In this paper, we apply the econometric techniques traditionally used to estimate the patent production function of firms to data on the patents of American universities. We find that more money spent on academic research leads to more university patents, with elasticities that are similar to those found for commercial firms. In addition, we provide estimates of the effect of establishing a Technology Transfer Office on a university's patent output.     

Knowledge diffusion from university and public research. A comparison between US,Japan and Europe using patent citations

This paper estimates the process of diffusion and decay of knowledge from university, public laboratories and corporate patents in six countries and tests the differences across countries and across technological fields using data from the European Patent Office. It finds that university and public research patents are more cited relatively to companies’ patents. However these results are mainly driven by the Chemical, Drugs & Medical, and Mechanical fields and US universities. In Europe and Japan, where the great majority of patents from public research come from national agencies, there is no evidence of a superior fertility of university and public laboratory patents vis à vis corporate patents. The distribution of the citation lags shows that knowledge embedded in university and public research patents tends to diffuse more rapidly relative to corporate ones in particular in the US, Germany, France and Japan.

Mario Franzosi

When did you notice the first stirrings of becoming an IP man? Straight after graduation, Italian chemical company Edison askedme to consider the validity of some of Natta's polypropylenepatents, for which he won the Nobel prize, owned by Edison'sItalian competitor Montecatini. After some months I concludedthey were invalid for obviousness (the legal concept of obviousnesshaving nothing to do with reality). Later, Edison and Montecatinimerged and I had to say that the patents were valid. The same patents were declared invalid in the US after epiclitigation that     

On The Application of Fuzzy Clustering for Crime Hot Spot Detection

   One of the fundamental challenges in crime mapping and analysis is pattern recognition. Efforts and methods to detect crime hot-spots, or geographic areas of elevated criminal activity, are wide ranging. For aggregate data, such as total crime events in a census tract(s), measures of spatial autocorrelation have proven useful. For disaggregate data (i.e. individual crime events), kernel density smoothing and non-hierarchical cluster analysis (e.g. k-means), are widely used. Non-hierarchical techniques are particularly effective in delineating geographic space into areas of higher or lower crime concentrations, because each observation is assigned to one and only one cluster. The resulting set of partitions provides clear-cut spatial boundaries that can be used for hot-spot evaluation and interpretation. However, the strength of non-hierarchical methods can also be viewed as a weakness. Although the hard-clustering of observations into a set of discrete clusters is helpful, there are many cases where ambiguity exists in the data. In such cases, a more generalized approach for hot-spot detection would be helpful. The purpose of this paper is to explore the use of a generalized partitioning method known as fuzzy clustering for hot-spot detection. Functional and visual comparisons of fuzzy clustering and two hard-clustering approaches (medoid and k-means), across a range of cluster values are analyzed. The empirical results suggest that a fuzzy clustering approach is better equipped to handle intermediate cases and spatial outliers.

IP: It's also about trust and French chefs

There is a principle in the law known as ‘admission againstinterest’. Here is my own admission. While we are delightedto bring together this collection of quality articles aboutthe multifaceted world of IP licensing and technology transfer,something is missing: we need to broaden our coverage aboutthe diverse ways that IP rights are licensed and transferred. To judge from the professional literature, licensing and technologytransfer primarily address the exploitation of patents, copyright,and trade marks. Each of these rights is based upon disclosureand     

A Semi-Parametric Spatial Regression Approach to Post-War Human Security: Cambodia, 2002–2004

Human security in post-war societies depends on incentives to forego violence in local interactions. The government of Cambodia monitors domestic violence, land conflicts and serious crime in over 13,000 villages and urban neighbourhoods. We use three annual data collections to estimate the response of these conflicts to the legacy of the war, poverty and resource competition, urbanity as well as governance quality. Bayesian spatial regressions help identify socio-economic thresholds beyond which conflicts expand or contract significantly. We find numerous non-linearities in the propensities for violence. Notably, predicted rates decrease in response to quality of governance only at a high level of service provision, which, realistically, most communities may not soon achieve. This may justify dedicated programmes addressing particular types of conflicts. We propose alternative analytic approaches, including some that would make the problem of endogeneity more tractable once updated poverty estimates become available. Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Exports and productivity of Russian firms: in search of causality

This paper uses a census of Russian manufacturing firms to study the relationship between exports and productivity at the firm level. The period studied, 1996–2002, implies that the results are affected by the Russian financial crisis of 1998. Exporters are shown to be more productive and larger than non-exporters, seemingly an effect of more productive firms self-selecting into the export market, rather than learning effects. But learning effects are significant among new entrants. Additionally, in examining the effect of the direction of exports on productivity, the finding is that the difference in the productivity level of firms exporting to the OECD and the CIS is insignificant.

What Patent Data Reveal about Universities: The Case of Belgium

In recent years, there has been a surge in patenting by Belgian universities. It appears that this increase can be attributed to growth of biotechnology, where there is a greater propensity to patent, to a desire on the part of universities to enhance commercialization through technology transfer offices (TTOs), and to effective collaboration between universities and government-sponsored research centers. Our qualitative analysis reveals that patent statistics could be a misleading indicator of an individual university's technological productivity, since many inventions are developed at universities, yet applied by other institutions.     

Universities and Patent Demands

Research universities have made enormous contributions to the field of medicine and the treatment of human disease. Alone or in collaboration with pharmaceutical companies, academic researchers have added to the store of knowledge that has led to numerous life science breakthroughs. A new chapter may be opening for academic researchers, however, that could lead to a darker tale. ‘The mouse that trolled: the long and tortuous history of a gene mutation patent that became an expensive impediment to Alzheimer''s research, by Bubela et al., chronicles one such tale.’ The authors do an excellent job of bringing to life the twisting saga that engulfed numerous academic and non-profit Alzheimer''s researchers over many years. The authors note that the story is an outlier, but sadly, that may not be the case. There are increasing signs that academic researchers and their institutions are being caught up in the rush for gold that is accompanying the proliferation of the non-practicing entity business model. As I have noted before, academic institutions have a dual role, as keepers of the academic flame and guardians of the public monies entrusted to them through state and federal research funding. The specter of taxpayer money being used, not to advance research and for the betterment of society, but as part of schemes to extract money from productive companies may not sit well with voters, and ultimately, with legislators. In that case, researchers and institutions themselves may have much to lose.‘The Mouse that Trolled: The Long and Tortuous History of A Gene Mutation Patent That Became an Expensive Impediment to Alzheimer''s Research’ describes an important case in which a gene mutation patent, owned by a non-practicing entity, was asserted against researchers studying the causes and effects of Alzheimer''s disease. Non-practicing entities (NPEs) are parties whose core activity involves licensing or litigating patents, rather than making products. The article details nearly two decades of litigation—targeted at universities, foundations, and non-profits—and illustrates the immeasurable damage to disease research caused by the battle. Although the authors examine a single example of an NPE targeting biopharmaceutical research, observational evidence suggests that such cases will be neither rare nor uncommon across time, raising concerns about the way in which the public interest may be lost along the way. Particularly troubling is the possibility that universities themselves may increasingly partner with NPEs, in an effort to join the patent gold rush.Universities play a dual role in society, serving both as keepers of the academic flame and as guardians of society''s money. State and federal governments entrust universities with substantial amounts of research funding in the hope that academic minds can contribute to the store of knowledge that will lead to societal improvements in human health, technology, and other fields. And universities have, indeed, made profound contributions to knowledge and innovation, from which all of society has benefitted. In fact, in an effort to facilitate the translation of academic research into products for society, Congress adopted the 1980 Bayh-Dole Act.¹ Prior to Bayh-Dole, commentators had complained that the ‘return on investment’ from public research funding for universities failed to justify the dollars spent.² Bayh-Dole attempted to rectify that problem by allowing universities to control patenting and licensing of inventions created with federal money.³ The goal was to facilitate the creation of actual products from the storehouse of knowledge resulting from public funding of university research. In keeping with the idea that universities are trustees of public resources, Bayh-Dole created an environment in which universities would foster innovation through the commercial application of its patents.Bayh-Dole flowed from the basic principle that patents are granted, not solely to reward the inventor, but rather to incentivize activity that benefits society as a whole.⁴ In granting patents, we temporarily remove items from the store of what would otherwise be free to all and reserved to none in the hopes that this will redound to the benefit of society at large.⁵ Thus, patents are not the natural right of an inventor, but rather are rights created by the sovereign in the United States for limited societal purposes.⁶The federal government itself recently explored this concept in arguments before the Federal Circuit—the appeals court that hears cases related to patents—in Astornet Technologies Inc. v. BAE Systems, Inc. In Astornet, the patent holder claimed that three government contractors had violated its patent with their equipment to authenticate boarding passes at airports.⁷ The court dismissed the claims under 28 U.S.C. §1498, which stipulates that when the government uses a patented invention, any patent infringement action must be taken against the United States and not the individuals of companies with whom it contracts.⁸The government''s amicus curiae noted that the US does not ‘infringe’ when it uses a patented invention without authorization, and commentators have pointed out that according to this characterization, one must never think of the US as an ‘infringer,’ but rather as a sovereign that has simply chosen to offer compensation.⁹ According to the brief, the court cannot interpret the U.S. government''s actions as patent infringement. Rather, 28 U.S.C. §1498 stipulates that the only remedy for damages caused by the government''s use of a patent is just compensation after a complaint has been raised in the U.S. Court of Federal Claims. In other words, the government can always use a patent without permission, as long as it provides compensation at a later date if and only if a court rules in favor of a complaint raised by a patent grantee. Therefore, the government may force compulsory licensing and is never actually a patent infringer. This is not to say that the patent grantee has no remedy against the government. Rather, 28 U.S.C. §1498 waives sovereign immunity and establishes the process by which an inventor can claim royalties. At the end of the day, however, the government''s brief reminds us that patents are not granted for inventors to aggrandize their wealth but rather in the interest of society as represented by the sovereign.Bayh-Dole, of course, is a manifestation of this principle. Having entrusted universities with public funds for research, the sovereign then gives universities the right to patent and license the fruits of that research. The intent is not to further fill the university''s coffers with more money but to fill society''s coffers with new products. In other words, under Bayh-Dole, universities are given control over the licensing system specifically to foster the creation of new commercial products for the benefit of society. NPEs, however, muddy the waters.NPEs are individuals or businesses whose core activity involves licensing or litigating patents, rather than making products. NPEs make no products of their own but generate a return by asserting patents against companies that make products.¹⁰ Over the last few years, at least half of all the patent infringement suits filed in the United States have been filed by NPEs.¹¹ Often referred to as patent trolls, many scholars and commentators have argued that NPEs simply create a tax on production—the production of companies already making products. Although one could conceivably argue that they play some role in the innovation system,¹² whatever role they play, NPEs certainly do not make new products. They also do not appear to connect inventors with others who make new products out of their inventions.¹³Traditionally, universities have avoided engaging in widespread patent litigation. For example, a study of 15,000 patent lawsuits filed across four years in the United States found that NPEs filed a majority of those suits.¹⁴ Universities accounted for only one half of one percent of all first-named plaintiffs, making them almost invisible in the dataset.¹⁵Universities have also traditionally avoided partnering with NPEs. In fact, the Association of University Technology Managers (AUTM) released a public interest statement on ethical technology transfer principles in 2007, which universities could sign. The statement is advisory, not mandatory—setting out guidelines for best practices, rather than requirements. For those universities that signed the statement, the code specified that universities should not operate under a business model that is predicated on infringement litigation rather than commercialization to create products. AUTM, which includes some members who are already licensing technology to NPEs, has decided to reexamine the code.¹⁶ Even if AUTM upholds its original statement, however, it is possible that universities increasingly will license technology to the highest bidder, regardless of whether any new commercial products will result.Money is tempting, and the lure for universities to monetize their patents is becoming irresistible. For example, Intellectual Ventures, one of the largest patent holding companies in the United States and a notorious NPE, claims that it has handled patent licensing for 60 American universities but acknowledges that only two of which (Duke and Caltech) have led to commercial products.¹⁷ Notably, both Duke and Caltech had signed the 2007 AUTM Statement opposing transferring patents to NPEs.¹⁸ In addition, press reports have identified examples of patents funded by federal programs that have been transferred to NPEs.¹⁹ Faced with the incentive to profit from research, at least some universities appear to be shifting away from the policy of avoiding NPEs. As the practice spreads, there is a significant risk that more and more universities will be rushing into the waiting arms of NPEs. In this case, universities may end up fueling the type of litigation that hindered Alzheimer''s researchers, as chronicled in ‘The Mouse that Trolled’.Moreover, these new university commercialization methods may have particularly serious consequences for the life science industry. Many people wrongly believe that biotechnology and the pharmaceutical industry are immune to NPE litigation. However, a study of the patent holdings in the fiscal year 2011 of five universities (the University of California system, MIT, the University of Texas system, Caltech, and the University of South Florida) identified numerous patents that could be deployed with the same techniques that patent trolls have used in the technology sector. These included patents on active ingredients of existing drugs, methods of treatment, screening methods to identify new drugs, manufacturing methods, dosage forms, as well as related technologies.²⁰If universities continue to move toward interactions with NPEs, such portfolios will provide tempting morsels to feed the patent trolling appetite, and could help drive patent trolling more toward the life sciences, a result that cannot be good for life science innovation. It would be troubling if taxpayer money that flows to universities ends up fueling patent trolling, rather than encouraging the creation of new products. In that case, the implicit agreement between the public and the research it funds would be disrupted.‘The Mouse that Trolled: The Long and Tortuous History of A Gene Mutation Patent That Became an Expensive Impediment to Alzheimer''s Research’ tells the cautionary tale of the ways in which NPEs, through patent assertion, hinder progress that affects the public. It is clear, however, that there will be similar examples in the future. The authors’ tale not only casts doubt on the NPE model; it should also make us think deeply about the role that the public expects universities to play in society. The public interest requires that universities act responsibly with public funding and remain dedicated to society''s benefit. University patent monetization via NPEs both fails the spirit of Bayh-Dole and damages the public''s trust.     

An Evaluation of Displacement and Diffusion Effects on Eco-Terrorist Activities After Police Interventions

Objectives

Eco-terrorist activities have caused much property damage and are considered one of the leading domestic terrorism threats. However, despite the threat posed by these activities, the possibility of spatial displacement of eco-terrorism as a result of police crackdowns has not previously been empirically examined. The current study focuses on addressing this knowledge gap by examining the displacement of radical environmental and animal rights movement terrorist activities after a successful police crackdown (i.e. Operation Backfire).

Methods

The study uses data collected from two sources: The Global Terrorism Database and the Eco-Incidents Database. To measure the extent of spatial displacement, two types of displacement statistics were used: weighted displacement quotient (WDQ) and Local Indicators of Spatial Association (LISA) statistics.

Results

Results from WDQ analysis and LISA statistics show that the key intervention of Operation Backfire did not displace the attacks of the eco-terrorist groups. On the contrary, the law enforcement intervention effectively resulted in diffusion of benefits in adjacent areas.

Conclusions

Overall, the results show that traditional police tactics may be a useful way to counter eco-terrorism without leading to spatial displacement. This is important as it shows that radical environmentalists and animal rights activists may be deterred, like regular criminals, by conventional law enforcement.

     

Trade Secrets, Firm-Specific Human Capital, and Optimal Contracting

Trade secrets are innovations jointly produced by firms and employees that are generally not protected by patents. They are commonly protected within the framework of labor contracts, where an obligation of confidentiality is imposed upon the employee. Specifically this obligation applies to the employee even after he has left the employer for a period of time determined in the contract, known as a cooling off period. Often employees are prohibited not only from revealing trade secrets, but also from utilizing their specific human capital developed at the original place of employment in competitor firms during this period. Their specific human capital is in effect inseparable from the trade secret. Failure to protect the trade secret will result in its revelation and its becoming public and hence worthless for the innovator. The inability of an employee to reveal trade secrets and utilize his specific human capital after leaving his place of employment imposes costs and losses upon him. Some form of compensation will be paid for these contingent losses within the employment contract. Employers know that the longer the cooling off period imposed upon employees, the greater employees must be compensated for this in the contract. Longer cooling off periods thus cost the employer more, but also enable him to earn greater rents from the innovation itself. In this paper profit-maximizing periods of trade secret protection are derived, based on these two countervailing factors, and comparative statics exercises are performed. How the selection of profit-maximizing periods of trade secret protection when the incidence of resignation is itself affected by contract parameters and incentives is explored.     

Patent first, ask questions later: morality and biotechnology in patent law

This Article explores the U.S. "patent first, ask questions later" approach to determining what subject matter should receive patent protection. Under this approach, the U.S. Patent and Trademark Office (USPTO or the Agency) issues patents on "anything under the sun made by man," and to the extent a patent's subject matter is sufficiently controversial, Congress acts retrospectively in assessing whether patents should issue on such interventions. This practice has important ramifications for morally controversial biotechnology patents specifically, and for American society generally. For many years a judicially created "moral utility" doctrine served as a type of gatekeeper of patent subject matter eligibility. The doctrine allowed both the USTPO and courts to deny patents on morally controversial subject matter under the fiction that such inventions were not "useful." The gate, however, is currently untended. A combination of the demise of the moral utility doctrine, along with expansive judicial interpretations of the scope of patent-eligible subject matter, has resulted in virtually no basis on which the USTPO or courts can deny patent protection to morally controversial, but otherwise patentable, subject matter. This is so despite position statements by the Agency to the contrary. Biotechnology is an area in which many morally controversial inventions are generated. Congress has been in react-mode following the issuance of a stream of morally controversial biotech patents, including patents on transgenic animals, surgical methods, and methods of cloning humans. With no statutory limits on patent eligibility, and with myriad concerns complicating congressional action following a patent's issuance, it is not Congress, the representative of the people, determining patent eligibility. Instead, it is patent applicants, scientific inventors, who are deciding matters of high public policy through the contents of the applications they file with the USTPO. This Article explores how the United States has come to be in this position, exposes latent problems with the "patent first" approach, and considers the benefits and disadvantages of the "ask questions first, patents later" approaches employed by some other countries. The Article concludes that granting patents on morally controversial biotech subject matter and then asking whether such inventions should be patentable is bad policy for the United States and its patent system, and posits workable, proactive ways for Congress to successfully guard the patent-eligibility gate.     

Target Selection Models with Preference Variation Between Offenders

Objectives

This study explores preference variation in location choice strategies of residential burglars. Applying a model of offender target selection that is grounded in assertions of the routine activity approach, rational choice perspective, crime pattern and social disorganization theories, it seeks to address the as yet untested assumption that crime location choice preferences are the same for all offenders.

Methods

Analyzing detected residential burglaries from Brisbane, Australia, we apply a random effects variant of the discrete spatial choice model to estimate preference variation between offenders across six location choice characteristics. Furthermore, in attempting to understand the causes of this variation we estimate how offenders’ spatial target preferences might be affected by where they live and by their age.

Results

Findings of this analysis demonstrate that while in the aggregate the characteristics of location choice are consistent with the findings from previous studies, considerable preference variation is found between offenders.

Conclusions

This research highlights that current understanding of choice outcomes is relatively poor and that existing applications of the discrete spatial choice approach may underestimate preference variation between offenders.

     

Effects on academia-industry collaboration of extending university property rights

Several recent studies show European university scientists contributing far more frequently to company-owned patented inventions than they do to patents owned by universities or by the academic scientists themselves. Recognising the significance of this channel for direct commercialisation of European academic research makes it important to understand its response to current Bayh-Dole inspired reforms of university patenting rights. This paper studies the contribution from university scientists to inventions patented by dedicated biotech firms (DBFs) specialised in drug discovery in Denmark and Sweden, which in this respect share a number of structural and historic characteristics. It examines effects of the Danish Law on University Patenting (LUP) effective January 2000, which transferred to the employer university rights to patents on inventions made by Danish university scientists alone or as participants in collaborative research with industry. Sweden so far has left property rights with academic scientists, as they also were in Denmark prior to the reform. Consequently, comparison of Danish and Swedish research collaboration before and after LUP offers a quasi-controlled experiment, bringing out effects on joint research of university IPR reform. In original data on all 3,640 inventor contributions behind the 1,087 patents filed by Danish and Swedish DBFs 1990–2004, Difference-in-Difference regressions uncover notable LUP-induced effects in the form of significant reductions in contributions from Danish domestic academic inventors, combined with a simultaneous substitutive increase of non-Danish academic inventors. A moderate increase in academic inventions channelled into university owned-patents does appear after LUP. But the larger part of the inventive potential of academia, previously mobilised into company-owned patents, seems to have been rendered inactive as a result of the reform. As a likely explanation of these effects the paper suggests that exploratory research, the typical target of joint university-DBF projects in drug discovery, fits poorly into LUP’s requirement for ex ante allocation of IPR. The Pre-LUP convention of IPR allocated to the industrial partner in return for research funding and publication rights to the academic partner may have offered more effective contracting for this type of research. There are indications that LUP, outside the exploratory agenda of drug discovery, offers a more productive framework for inventions requiring less complicated and uncertain post-discovery R&D.

Tripartite decomposition of labor productivity growth,FDI and human development: evidence from transition economies

This study investigates the relative contribution of technological change, technological catch-up and capital deepening as drivers of labor productivity growth in 14 transition economies during the period 2000–2012. In addition, the study extends the usual decomposition of labor productivity growth by encompassing the impact of foreign direct investment (FDI) on labor productivity growth in transition economies. To illustrate the relative contribution of FDI as a driver of labor productivity growth, we present a simple theoretical model that augments Kohli [Labour productivity vs. total factor productivity. IFC Bulletin 20 (April), Irving Fisher Committee on Central Bank Statistics, International Statistical Institute, 2005] and Grosskopf et al. (Aggregation, efficiency, and measurement, Springer, New York, pp 97–116, 2007) decomposition of the labor productivity. The insights derived in this model provide an underpinning to the empirical analysis in this study. Using Blundell–Bond dynamic panel General Method of Moments estimators, the main finding of dynamic panel data regressions shows that technological catch-up, technological change, and human development level, trade and demographic of population ageing are the main factors that affect labor productivity growth in transition countries. Furthermore, the findings of dynamic panel data regressions show insignificant positive impact of FDI on productivity growth in transition economies. One explanation is that the 14 transition economies that are included in this study do not reach a minimum human development threshold level.     

The Influence of Community Areas,Neighborhood Clusters,and Street Segments on the Spatial Variability of Violent Crime in Chicago

Objectives

The influence of three hierarchical units of analysis on the total spatial variability of violent crime incidents in Chicago is assessed. This analysis seeks to replicate a recent study that found street segments, rather than neighborhood units of analysis, accounted for the largest share of the total spatial variability of crime in The Hague, Netherlands (see Steenbeek and Weisburd J Quant Criminol. doi: 10.1007/s10940-015-9276-3, 2015).

Methods

We analyze violent crime incidents reported to the police between 2001 and 2014. 359,786 incidents were geocoded to 41,926 street segments nested within 342 neighborhood clusters, in turn nested within 76 community areas in Chicago. Linear mixed models with random slopes of time were estimated to observe the variance uniquely attributed to each unit of analysis.

Results

Similar to Steenbeek and Weisburd, we find 56–65 % of the total variability in violent crime incidents can be attributed to street segments in Chicago. City-wide reductions in violence over the observation period coincide with increases in the spatial variability attributed to street segments and decreases in the variability attributed to both neighborhood units.

Conclusions

Our results suggest that scholars interested in understanding the spatial variation of crime across urban landscapes should be focused on the small places that comprise larger geographic areas. The next wave of “neighborhood-effects” research should explore the role of hierarchical processes in understanding crime variation within larger areas.

     

Firm performance and privatization in Ukraine

Investigating the effects of privatization in transition countries is the focus of a large body of current research. Generally, privatization stimulates private sector development, attracts foreign direct investment, fosters competition and contributes to the formation of stock markets. In addition, privatization may improve individual enterprises’ performance. This paper investigates the impact of privatization on Ukrainian firms’ productivity. The empirical research is based on a sample of 466 Ukrainian joint-stock enterprises for the period of 1997–1999. Estimation results indicate that privatization positively influences labor productivity, sales and profitability, but also that these effects diminish over time.

Not ‘Islands,Entire of Themselves’: Exploring the Spatial Context of City-level Robbery Rates

The current study examines spatial dependence in robbery rates for a sample of 1,056 cities with 25,000 or more residents over the 2000–2003 period. Although commonly considered in some macro-level research, spatial processes have not been examined in relation to city-level variation in robbery. The results of our regression analyses suggest that city robbery rates are not spatially independent. We find that spatial dependence is better accounted for by spatial error models than by spatial lag models. Further exploration of various spatial weights matrices indicates that robbery rates of cities within the same state are related to robbery rates of other cities within the same state, regardless of their proximity. Our analyses illustrate how systematic inquiry into spatial processes can alert researchers to important omitted variable biases and identify intriguing problems for future research.