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State Capacity and American Technology: Evidence from the 19th Century

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Listed:
  • Daron Acemoglu
  • Jacob Moscona
  • James A. Robinson

Abstract

Robert Gordon's The Rise and Fall of American Economic Growth provides a compelling interpretation of how technical change and innovation has radically changed the living standards of the citizens of the US in the past 150 years. Lying behind these changes are the institutions which have allowed the country to harness its human potential. In this paper we conduct an empirical investigation of the impact of one key set of institutions, the capacity of the US state as proxied by the presence of post offices in a county, on innovation. We show that between 1804 and 1899, the time when the US became the world technological leader, there is a strong association between the presence and number of post offices in a county and patenting activity, and it appears that it is the opening of postal offices that leads to surges in patenting activity, not the other way around. Our evidence suggests that part of the yet untold story of US technological exceptionalism is the way in which the US created an immensely capable and effective state.

Suggested Citation

  • Daron Acemoglu & Jacob Moscona & James A. Robinson, 2016. "State Capacity and American Technology: Evidence from the 19th Century," NBER Working Papers 21932, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21932
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    File URL: http://www.nber.org/papers/w21932.pdf
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    Cited by:

    1. Wang, Xu & Zhang, Xiaobo & Xie, Zhuan & Huang, Yiping, 2016. "Roads to innovation: Firm-level evidence from China:," IFPRI discussion papers 1542, International Food Policy Research Institute (IFPRI).
    2. repec:eee:exehis:v:64:y:2017:i:c:p:1-20 is not listed on IDEAS
    3. repec:voj:journl:v:63:y:2016:i:5:p:627-636 is not listed on IDEAS
    4. repec:eee:juecon:v:104:y:2018:i:c:p:59-76 is not listed on IDEAS

    More about this item

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • N11 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: Pre-1913
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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