The Agglomeration of R&D Labs

Posted: 27 Sep 2011 Last revised: 26 Apr 2015

See all articles by Gerald A. Carlino

Gerald A. Carlino

Federal Reserve Bank of Philadelphia

Jake Carr

Center for Urban and Regional Analysis

Robert M. Hunt

Consumer Finance Institute, Federal Reserve Bank of Philadelphia

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering

Multiple version iconThere are 3 versions of this paper

Date Written: September 1, 2011

Abstract

The authors study the location and productivity of more than 1,000 research and development (R&D) labs located in the Northeast corridor of the U.S. Using a variety of spatial econometric techniques, they find that these labs are substantially more concentrated in space than the underlying distribution of manufacturing activity. Ripley's K-function tests over a variety of spatial scales reveal that the strongest evidence of concentration occurs at two discrete distances: one at about one-quarter of a mile and another at about 40 miles. These findings are consistent with empirical research that suggests that some spillovers depreciate very rapidly with distance, while others operate at the spatial scale of labor markets. The authors also find that R&D labs in some industries (e.g., chemicals, including drugs) are substantially more spatially concentrated than are R&D labs as a whole.

Note: This paper has been superseded by WP 15-03.

Keywords: agglomeration economies, knowledge spillovers, geographic concentration, innovation, R&D

JEL Classification: O31, R11

Suggested Citation

Carlino, Gerald A. and Carr, Jake and Hunt, Robert M. and Smith, Tony E., The Agglomeration of R&D Labs (September 1, 2011). FRB of Philadelphia Working Paper No. 11-42. Available at SSRN: https://ssrn.com/abstract=1933791 or http://dx.doi.org/10.2139/ssrn.1933791

Gerald A. Carlino (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-6434 (Phone)
215-574-4364 (Fax)

Jake Carr

Center for Urban and Regional Analysis ( email )

0126 Derby Hall
154 North Oval Mall
Columbus, OH 43210
United States

Robert M. Hunt

Consumer Finance Institute, Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-3806 (Phone)
215-574-7101 (Fax)

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering ( email )

School of Engineering & Applied Science
3718 Locust Walk
Philadelphia, PA 19104
United States
215-898-9647 (Phone)
215-898-5020 (Fax)

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