Where Discovery Happens: Research Institutions and Fundamental Knowledge in the Life-Sciences

Fundamental knowledge in the life sciences has consequential implications for medicine and subsequent medical innovations. Using publications in leading life science journals to measure fundamental knowledge, we document large agglomerations in the institutions where it is discovered and a robust correlation between knowledge and subsequent citations in patents. We assess whether the institution where research is produced affects the output of scientists by using a scientist-mover design, which compares annual research output before and after a move for the same scientist. Between 50 − 60% of a scientist’s research output is attributable to the institution where they work, and two thirds of this effect is driven by the presence of star researchers. The magnitude of these effects has not decreased in more recent time periods, in the wake of technologies that make cross-institution collaborations easier, nor is it larger for moves to larger agglomerations, nor concentrated in particular scientific fields. We discuss the implications of these findings for research allocations in science and scientists’ leaving one institution for another.