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Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010

Author

Listed:
  • Ron Boschma
  • Pierre-Alexandre Balland
  • Dieter Franz Kogler

Abstract

This article investigates by means of US Patent and Trademark Office (USPTO) patent data whether technological relatedness at the city level was a crucial driving force behind technological change in 366 US cities from 1981 to 2010. Based on a three-way fixed-effects model, we find that the entry probability of a new technology in a city increases by 30% if the level of relatedness with existing technologies in the city increases by 10%, while the exit probability of an existing technology decreases by 8%.

Suggested Citation

  • Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2015. "Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 223-250.
    • Handle: RePEc:oup:indcch:v:24:y:2015:i:1:p:223-250.
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    File URL: http://hdl.handle.net/10.1093/icc/dtu012
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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