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How Do Travel Costs Shape Collaboration?

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  • Christian Catalini
  • Christian Fons-Rosen
  • Patrick Gaulé

Abstract

We develop a simple theoretical framework for thinking about how geographic frictions, and in particular travel costs, shape scientists' collaboration decisions and the types of projects that are developed locally versus over distance. We then take advantage of a quasi-experiment — the introduction of new routes by a low-cost airline — to test the predictions of the theory. Results show that travel costs constitute an important friction to collaboration: after a low-cost airline enters, the number of collaborations increases between 0.3 and 1.1 times, a result that is robust to multiple falsification tests and causal in nature. The reduction in geographic frictions is particularly beneficial for high quality scientists that are otherwise embedded in worse local environments. Consistent with the theory, lower travel costs also endogenously change the types of projects scientists engage in at different levels of distance. After the shock, we observe an increase in higher quality and novel projects, as well as projects that take advantage of complementary knowledge and skills between sub-fields, and that rely on specialized equipment. We test the generalizability of our findings from chemistry to a broader dataset of scientific publications, and to a different field where specialized equipment is less likely to be relevant, mathematics. Last, we discuss implications for the formation of collaborative R&D teams over distance.

Suggested Citation

  • Christian Catalini & Christian Fons-Rosen & Patrick Gaulé, 2018. "How Do Travel Costs Shape Collaboration?," NBER Working Papers 24780, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24780
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    Cited by:

    1. John Manuel Barrios & Laura Giuliano & Andrew J. Leone, 2020. "In Living Color: Does In-Person Screening Affect Who Gets Hired?," Working Papers 2020-38, Becker Friedman Institute for Research In Economics.

    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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