Abstract

http://ssrn.com/abstract=1992829
 
 

Citations (3)



 
 

Footnotes (23)



 


 



Why are Some Regions More Innovative than Others? The Role of Firm Size Diversity


Ajay Agrawal


University of Toronto - Rotman School of Management; National Bureau of Economic Research (NBER)

Iain M. Cockburn


Boston University School of Management; National Bureau of Economic Research (NBER)

Alberto Galasso


University of Toronto - Strategic Management

Alexander Oettl


Georgia Institute of Technology - Strategic Management Area

January 2012

NBER Working Paper No. w17793

Abstract:     
Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these two localized externalities and their impact on regional innovation. We examine MSA-level patent data during the period 1975-2000 and find that innovation output is higher where large and small labs coexist. The finding is robust to across-region as well as within-region analysis, IV analysis, and the effect is stronger in certain subsamples consistent with our explanation but not the plausible alternatives.

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Number of Pages in PDF File: 49

working papers series


Date posted: January 27, 2012  

Suggested Citation

Agrawal, Ajay and Cockburn, Iain M. and Galasso, Alberto and Oettl, Alexander, Why are Some Regions More Innovative than Others? The Role of Firm Size Diversity (January 2012). NBER Working Paper No. w17793. Available at SSRN: http://ssrn.com/abstract=1992829

Contact Information

Ajay Agrawal (Contact Author)
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Iain M. Cockburn
Boston University School of Management ( email )
595 Commonwealth Avenue
Boston, MA MA 02215
United States
617-353-3775 (Phone)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Alberto Galasso
University of Toronto - Strategic Management ( email )
Canada
Alexander Oettl
Georgia Institute of Technology - Strategic Management Area ( email )
Atlanta, GA 30332
United States
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