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Taking Innovation to the Streets: Microgeography, Physical Structure, and Innovation

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  • Maria P. Roche

    (Georgia Institute of Technology and Harvard University)

Abstract

In this paper, we analyze how the physical layout of cities affects innovation by influencing the organization of knowledge exchange. We exploit a novel data set covering all census block groups in the contiguous United States with information on innovation outcomes, street infrastructure, as well as population and workforce characteristics. To deal with concerns of omitted variable bias, we apply commuting zone fixed effects and construct instruments based on historic city planning. The results suggest that variation in street network density may explain regional innovation differentials beyond the traditional location externalities found in the literature.

Suggested Citation

  • Maria P. Roche, 2020. "Taking Innovation to the Streets: Microgeography, Physical Structure, and Innovation," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 912-928, December.
    • Handle: RePEc:tpr:restat:v:102:y:2020:i:5:p:912-928
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    Cited by:

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    3. Xiao, Hongyu & Wu, Andy & Kim, Jaeho, 2021. "Commuting and innovation: Are closer inventors more productive?," Journal of Urban Economics, Elsevier, vol. 121(C).
    4. Doloreux, David & Shearmur, Richard & St-Pierre, Laurie-Anne, 2024. "Innovation modes and knowledge interactions: A micro-geographic approach," Technovation, Elsevier, vol. 137(C).
    5. Diemer, Andreas & Regan, Tanner, 2022. "No inventor is an island: Social connectedness and the geography of knowledge flows in the US," Research Policy, Elsevier, vol. 51(2).
    6. De Bruyn, Gianni & Freed, Paul G., 2025. "Workforce sleep and corporate innovation," Research Policy, Elsevier, vol. 54(3).
    7. Kinne, Jan & Dehghan, Robert & Schmidt, Sebastian & Lenz, David & Hottenrott, Hanna, 2024. "Location factors and ecosystem embedding of sustainability-engaged blockchain companies in the US: A web-based analysis," ZEW Discussion Papers 24-023, ZEW - Leibniz Centre for European Economic Research.
    8. Contigiani, Andrea & Testoni, Marco, 2023. "Geographic isolation, trade secrecy, and innovation," Research Policy, Elsevier, vol. 52(8).
    9. Inggrid & Budy P. Resosudarmo, 2024. "Can air traffic booms induce innovation and bridge regional innovation gaps?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(4), pages 1757-1781, December.
    10. Derrick Choe & Alexander Oettl & Robert Seamans, 2020. "What’s Driving Entrepreneurship and Innovation in the Transport Sector?," NBER Working Papers 27284, National Bureau of Economic Research, Inc.
    11. Yu, Sandy & Fleming, Lee, 2022. "Regional crowdfunding and high tech entrepreneurship," Research Policy, Elsevier, vol. 51(9).
    12. Diane Coyle, 2021. "The idea of productivity," Working Papers 003, The Productivity Institute.
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    15. Michael W. Mehaffy, 2024. "UN-Sustainable Urbanism: The Challenge of “Lock-In”," Sustainability, MDPI, vol. 16(17), pages 1-16, August.

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