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Agglomeration and the Spatial Distribution of Creativity

Author

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  • Andersson, Roland
  • Quigley, John M.
  • Wilhelmsson, Mats

Abstract

This article analyses the spatial distribution of "creativity" - the production of new knowledge. We analyse commercial patents granted in Sweden between 1994 and 2001 using a panel of 100 labour market areas that encompass the entire country. We relate patent activity to measures of localisation and urbanisation, to the industrial composition and size distribution of firms, and to the regional distribution of human capital. Our analysis confirms the importance of human capital and research facilities in stimulating regional patent output. Our results document the importance of agglomeration and spatial factors in influencing creativity: patent activity is increased in larger and more dense labour markets and in regions in which a larger fraction of the labour force is employed in medium-sized firms. Our results also indicate that creativity is greater in labour markets with more diverse employment bases and in those which contain a larger share of national employment in certain industries, thus confirming the importance of urbanisation and localisation economies in stimulating creativity. Our quantitative results suggest that the urbanisation of Sweden during the 1990s had an important effect upon the aggregate level of patent activity in the country, leading to increases of up to 15 percent in aggregate patents.

Suggested Citation

  • Andersson, Roland & Quigley, John M. & Wilhelmsson, Mats, 2005. "Agglomeration and the Spatial Distribution of Creativity," Berkeley Program on Housing and Urban Policy, Working Paper Series qt1wd73461, Berkeley Program on Housing and Urban Policy.
    • Handle: RePEc:cdl:bphupl:qt1wd73461
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    Keywords

    Agglomeration;

    JEL classification:

    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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