Concentration and Agglomeration of it Innovation and Entrepreneurship: Evidence from Patenting

31 Pages Posted: 9 Jun 2020 Last revised: 13 Mar 2023

See all articles by Chris Forman

Chris Forman

Cornell University - Charles H. Dyson School of Applied Economics and Management

Avi Goldfarb

University of Toronto - Rotman School of Management

Date Written: June 2020

Abstract

Information technology (IT) matters to prosperity. The top patenters are increasingly IT companies. We use data on US patents to document four trends in IT patenting. First, firm-level concentration in IT patenting is increasing over time. Second, geographic concentration in IT patenting is increasing over time. Third, most technology classes experienced a decline in new patenters from 1980 to 2000. This was not true of new IT patents. Since 2000, the trend in new IT patenters looks like other classes and is declining over time. Fourth, there is increased geographic concentration of new IT patenters. We do not identify the reasons behind these trends nor whether they are related to overall changes in industry concentration, agglomeration, or prosperity.

Suggested Citation

Forman, Chris and Goldfarb, Avi, Concentration and Agglomeration of it Innovation and Entrepreneurship: Evidence from Patenting (June 2020). NBER Working Paper No. w27338, Available at SSRN: https://ssrn.com/abstract=3621844

Chris Forman (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Avi Goldfarb

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416-946-8604 (Phone)
416-978-5433 (Fax)

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