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Commuting and innovation: Are closer inventors more productive?

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  • Xiao, Hongyu
  • Wu, Andy
  • Kim, Jaeho

Abstract

We estimate the causal effect of workplace–home commuting distance on inventor productivity. We construct a novel panel of U.S. inventors with precisely measured workplace–home distances and inventor-level productivity. Our identification strategy exploits firm office relocations as exogenous variation in the commuting distance of inventors at the firms. We find a significant negative effect from commuting distance on inventor productivity: every 10 km increase in distance is associated with a 5% decrease in patents per inventor–firm pair per year and an even greater 7% decrease in patent quality. The highest-performing inventors suffer more from increased commuting distance. We discuss the implications of our findings in the light of recent trends around telecommuting and remote work during the COVID-19 pandemic.

Suggested Citation

  • Xiao, Hongyu & Wu, Andy & Kim, Jaeho, 2021. "Commuting and innovation: Are closer inventors more productive?," Journal of Urban Economics, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:juecon:v:121:y:2021:i:c:s0094119020300711
    DOI: 10.1016/j.jue.2020.103300
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    3. John T. H. Wong & Matthias Hei Man & Alex Li Cheuk Hung, 2022. "Population and Technological Growth: Evidence from Roe v. Wade," Papers 2211.00410, arXiv.org.
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    7. Widmann, Rainer, 2023. "Immigrant inventors and local income taxes: Evidence from Swiss municipalities," Journal of Public Economics, Elsevier, vol. 219(C).
    8. Diekhof, Josefine & Krieger, Bastian & Licht, Georg & Rammer, Christian & Schmitt, Johannes & Stenke, Gero, 2021. "The impact of the Covid-19 crisis on innovation: First in-sights from the German business sector," ZEW Expert Briefs 21-06, ZEW - Leibniz Centre for European Economic Research.
    9. Trunschke, Markus & Peters, Bettina & Czarnitzki, Dirk & Rammer, Christian, 2023. "Pandemic effects: Do innovation activities of firms suffer from long-Covid?," ZEW Discussion Papers 23-014, ZEW - Leibniz Centre for European Economic Research.
    10. Feicheng Wang & Zheng Wang & Zhuo Zhou, 2021. "Business flies: The trade promoting effect of air connectivity," Discussion Papers 2021-04, University of Nottingham, GEP.

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    More about this item

    Keywords

    Commuting distance; Proximity; Inventor productivity; Innovation; Firm relocation; Telecommuting;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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