Technological Adaptation, Cities, and New Work
45 Pages Posted: 18 Aug 2009 Last revised: 21 Nov 2019
Date Written: July 28, 2009
Where does adaptation to innovation take place? The author presents evidence on the role of agglomeration economies in the application of new knowledge to production. All else equal, workers are more likely to be observed in new work in locations that are initially dense in both college graduates and industry variety. This pattern is consistent with economies of density from the geographic concentration of factors and markets related to technological adaptation. A main contribution is to use a new measure, based on revisions to occupation classifications, to closely characterize cross-sectional differences across U.S. cities in adaptation to technological change. Worker-level results also provide new evidence on the skill bias of recent innovations.
Keywords: innovation, agglomeration economies, occupations, human capital, industrial diversity
JEL Classification: J21, J24, O33, R12, R23
Suggested Citation: Suggested Citation