The Geography of New Technologies

45 Pages Posted: 13 Aug 2020 Last revised: 14 Aug 2020

See all articles by Nicholas Bloom

Nicholas Bloom

Stanford University - Department of Economics; National Bureau of Economic Research (NBER)

Tarek A. Hassan

Boston University; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Aakash Kalyani

Federal Reserve Banks - Research Division; Federal Reserve Banks - Research Division

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Private Capital Research Institute

Ahmed Tahoun

London Business School

Date Written: June 15, 2020

Abstract

We identify novel technologies using textual analysis of earnings conference calls, newspapers, announcements, and patents. Our approach enables us to document the rollout of 20 new technologies across firms and labor markets in the U.S. Four stylized facts emerge from our data. First, as technologies develop, the number of new positions related to them grows, but the average education requirements and wage levels of the positions drop. Second, as technologies develop, their employment impact diffuses across the country: initially, technologies are concentrated in local hubs, but over time, their adoption diffuses geographically. Third, despite this diffusion, the initial hubs retain a disproportionate share of employment in the technology, particularly at the high-skill end of the spectrum. Finally, technology hubs are more likely to arise in areas with universities and high skilled labor pools.

Keywords: Technology, Geography, Employment, Innovation, R&D

JEL Classification: O31,O32

Suggested Citation

Bloom, Nicholas and Hassan, Tarek Alexander and Kalyani, Aakash and Lerner, Josh and Tahoun, Ahmed, The Geography of New Technologies (June 15, 2020). Institute for New Economic Thinking Working Paper Series No. 126
https://doi.org/10.36687/inetwp126 , Available at SSRN: https://ssrn.com/abstract=3671016

Nicholas Bloom

Stanford University - Department of Economics ( email )

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HOME PAGE: http://economics.stanford.edu/faculty/bloom

National Bureau of Economic Research (NBER) ( email )

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Tarek Alexander Hassan

Boston University ( email )

270 Bay State Road
Boston, MA 02215
United States

National Bureau of Economic Research (NBER)

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United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Aakash Kalyani

Federal Reserve Banks - Research Division ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Federal Reserve Banks - Research Division ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Josh Lerner

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Harvard University - Private Capital Research Institute ( email )

114 Western Ave
Allston, MA 02134
United States

Ahmed Tahoun (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

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