The Agglomeration of American Research and Development Labs

61 Pages Posted: 19 Jul 2017 Last revised: 30 Aug 2017

See all articles by Kristy Buzard

Kristy Buzard

Syracuse University - Department of Economics

Gerald A. Carlino

Federal Reserve Bank of Philadelphia

Robert M. Hunt

Consumer Finance Institute, Federal Reserve Bank of Philadelphia

Jake Carr

Center for Urban and Regional Analysis

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering

Date Written: 2017-07-18

Abstract

We employ a unique data set to examine the spatial clustering of about 1,700 private research and development (R&D) labs in California and across the Northeast corridor of the United States. Using these data, which contain the R&D labs’ complete addresses, we are able to more precisely locate innovative activity than with patent data, which only contain zip codes for inventors’ residential addresses. We avoid the problems of scale and borders associated with using fixed spatial boundaries, such as zip codes, by developing a new point pattern procedure. Our multiscale core-cluster approach identifies the location and size of significant R&D clusters at various scales, such as a half mile, one mile, five miles, and more. Our analysis identifies four major clusters in the Northeast corridor (one each in Boston, New York–Northern New Jersey, Philadelphia–Wilmington, and Washington, D.C.) and three major clusters in California (one each in the Bay Area, Los Angeles, and San Diego).

Keywords: spatial clustering, geographic concentration, R&D labs, innovation

JEL Classification: O31, R12

Suggested Citation

Buzard, Kristy and Carlino, Gerald A. and Hunt, Robert M. and Carr, Jake and Smith, Tony E., The Agglomeration of American Research and Development Labs (2017-07-18). FRB of Philadelphia Working Paper No. 17-18. Available at SSRN: https://ssrn.com/abstract=3005261

Kristy Buzard (Contact Author)

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

HOME PAGE: http://faculty.maxwell.syr.edu/kbuzard

Gerald A. Carlino

Federal Reserve Bank of Philadelphia ( email )

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

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)

Jake Carr

Center for Urban and Regional Analysis ( email )

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

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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