The Location of Industrial Innovation: Does Manufacturing Matter?
What explains the location of industrial innovation? Economists have traditionally attempted to answer this question by studying firm-external knowledge spillovers. This paper shows that firm-internal linkages between production and R&D play an equally important role. I estimate an R&D location choice model that predicts patents by a firm in a location from R&D productivity and costs. Focusing on large R&D-performing firms in the chemical industry, an average-sized plant raises the firm’s R&D productivity in the metropolitan area by about 2.5 times. The elasticity of R&D productivity with respect to the firm’s production workers is almost as large as the elasticity with respect to total patents in the MSA, while proximity to academic R&D has no significant effect on R&D productivity in this sample. Other manufacturing industries exhibit similar results. My results cast doubt on the frequently-held view that a country can divest itself of manufacturing and specialize in innovation alone.
|Date of creation:||Mar 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 4600 Silver Hill Road, Washington, DC 20233|
Phone: (301) 763-6460
Fax: (301) 763-5935
Web page: http://www.census.gov/ces
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hall, B. & Jaffe, A. & Trajtenberg, M., 2001.
"The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools,"
2001-29, Tel Aviv.
- Hall, Bronwyn H & Jaffe, Adam B & Trajtenberg, Manuel, 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," CEPR Discussion Papers 3094, C.E.P.R. Discussion Papers.
- Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
- Grid Thoma & Salvatore Torrisi & Alfonso Gambardella & Dominique Guellec & Bronwyn H. Hall & Dietmar Harhoff, 2010. "Harmonizing and Combining Large Datasets - An Application to Firm-Level Patent and Accounting Data," NBER Working Papers 15851, National Bureau of Economic Research, Inc.
- Mariani,Myriam, 1999.
"Next to Production or to Technological Clusters? The Economics and Management of R&D Location,"
027, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Myriam Mariani, 2002. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(2), pages 131-152, May.
- Natarajan Balasubramanian & Jagadeesh Sivadasan, 2011.
"What Happens When Firms Patent? New Evidence from U.S. Economic Census Data,"
The Review of Economics and Statistics,
MIT Press, vol. 93(1), pages 126-146, February.
- Natarajan Balasubramanian & Jagadeesh Sivadasan, 2008. "What Happens When Firms Patent? New Evidence from U.S. Economic Census Data," Working Papers 08-03, Center for Economic Studies, U.S. Census Bureau.
- Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2010.
"Spillovers in Space: Does Geography Matter?,"
CEP Discussion Papers
dp0991, Centre for Economic Performance, LSE.
- Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2010. "Spillovers in Space: Does Geography Matter?," NBER Working Papers 16188, National Bureau of Economic Research, Inc.
- Lychagin, Sergey & Pinkse, Joris & Slade, Margaret E. & Van Reenen, John, 2010. "Spillovers in Space: Does Geography Matter?," CEPR Discussion Papers 7928, C.E.P.R. Discussion Papers.
- J. Vernon Henderson & Yukako Ono, 2004.
"Where do manufacturing firms locate their headquarters?,"
Working Paper Series
WP-04-29, Federal Reserve Bank of Chicago.
- Henderson, J. Vernon & Ono, Yukako, 2008. "Where do manufacturing firms locate their headquarters?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 431-450, March.
- J. Vernon Henderson & Yukako Ono, 2005. "Where Do Manufacturing Firms Locate Their Headquarters?," Working Papers 05-17, Center for Economic Studies, U.S. Census Bureau.
- Jeffrey L. Furman & Megan MacGarvie, 2007.
"Academic Science and the Birth of Industrial Research Laboratories in the U.S. Pharmaceutical Industry,"
in: Academic Science and Entrepreneurship: Dual Engines of Growth
National Bureau of Economic Research, Inc.
- Furman, Jeffrey L. & MacGarvie, Megan J., 2007. "Academic science and the birth of industrial research laboratories in the U.S. pharmaceutical industry," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 756-776, August.
- Jeffrey L. Furman & Margaret K. Kyle & Iain Cockburn & Rebecca M. Henderson, 2010. "Public and Private Spillovers: Location and the Productivity of Pharmaceutical Research," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 165-188 National Bureau of Economic Research, Inc.
- Ufuk Akcigit & William R. Kerr, 2010.
"Growth Through Heterogeneous Innovations,"
NBER Working Papers
16443, National Bureau of Economic Research, Inc.
- Ufuk Akcigit & William R. Kerr, 2012. "Growth Through Heterogeneous Innovations," Working Papers 12-08, Center for Economic Studies, U.S. Census Bureau.
- Ufuk Akcigit & William R. Kerr, 2010. "Growth through Heterogeneous Innovations," PIER Working Paper Archive 10-035, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Mikko Ketokivi & Jyrki Ali-Yrkkö, 2009. "Unbundling R&D and Manufacturing: Postindustrial Myth or Economic Reality?," Review of Policy Research, Policy Studies Organization, vol. 26(1-2), pages 35-54, 01.
- Mohammad Arzaghi & J. Vernon Henderson, 2008.
"Networking off Madison Avenue,"
Review of Economic Studies,
Oxford University Press, vol. 75(4), pages 1011-1038.
- Naomi Hausman, 2012. "University Innovation, Local Economic Growth, and Entrepreneurship," Working Papers 12-10, Center for Economic Studies, U.S. Census Bureau.
When requesting a correction, please mention this item's handle: RePEc:cen:wpaper:13-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fariha Kamal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.