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How the West Has Won: Regional and Industrial Inversion in U.S. Patent Activity

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  • Daniel K. N. Johnson
  • Amy Brown

Abstract

While it is clear that there has been a “regional inversion” in American patent activity over the past 25 years (i.e., relative rise of the Northwest and Southwest at the expense of the traditional invention hotbeds of the Northeast and Midwest), the reason is still open to speculation. Theory suggests that it can be explained by some combination of changing demographics and industrial composition. We introduce constant market share analysis, typically used only in international trade theory, offer a new extension to this tool, and conclude that industrial shifts have accounted for almost half the regional inversion among states. The results of the regression analysis show how the West capitalized upon the shift via demographics and policy variables, whose importance varies with the planning horizon.

Suggested Citation

  • Daniel K. N. Johnson & Amy Brown, 2004. "How the West Has Won: Regional and Industrial Inversion in U.S. Patent Activity," Economic Geography, Taylor & Francis Journals, vol. 80(3), pages 241-260, July.
    • Handle: RePEc:taf:recgxx:v:80:y:2004:i:3:p:241-260
    DOI: 10.1111/j.1944-8287.2004.tb00234.x
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    Cited by:

    1. Jung Won Sonn & Michael Storper, 2008. "The Increasing Importance of Geographical Proximity in Knowledge Production: An Analysis of US Patent Citations, 1975–1997," Environment and Planning A, , vol. 40(5), pages 1020-1039, May.
    2. John S. Landon-Lane & Catherine Y. Co & Myeong-Su Yun, 2006. "Inter-state dynamics of invention activities, 1930-2000," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1111-1134.
    3. Peter Kresl & Balwant Singh, 2012. "Urban Competitiveness and US Metropolitan Centres," Urban Studies, Urban Studies Journal Limited, vol. 49(2), pages 239-254, February.
    4. Johnson, Daniel K.N. & Acri nee Lybecker, Kristina M. & Moore, Jeffrey, 2019. "Sure, but who has the energy? The importance of location for knowledge transfer in the energy sector," Energy Economics, Elsevier, vol. 80(C), pages 582-588.

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