129 Pages Posted: 5 Oct 2015 Last revised: 4 Jan 2017
Date Written: December 9, 2016
We establish the importance of team-specific capital in the typical inventor's career. Using administrative tax and patent data for the population of US patent inventors from 1996 to 2012, we find that an inventor's premature death causes a large and long-lasting decline in their co-inventor's earnings and citation-weighted patents (-4% and -15% after 8 years, respectively). After ruling out firm disruption, network effects and top-down spillovers as main channels, we show that the effect is driven by close-knit teams and that team-specific capital largely results from an "experience" component increasing collaboration value over time.
Keywords: Innovation, Human Capital
JEL Classification: O31, O32, J24, J30, J41
Suggested Citation: Suggested Citation
Jaravel, Xavier and Petkova, Neviana and Bell, Alex, Team-Specific Capital and Innovation (December 9, 2016). Available at SSRN: https://ssrn.com/abstract=2669060 or http://dx.doi.org/10.2139/ssrn.2669060