Spillover Effects of Opioid Abuse on Skilled Human Capital and Innovation Activity

We document spillover effects of the opioid epidemic on the migration and output of skilled
workers who drive corporate innovation. Exploiting geographic variation in opioid abuse unrelated
to economic conditions, we document outmigration of inventors and research labs from
affected areas. This dislocation is accompanied by declines in the quantity and value of patent
filings, new business formation, venture capital investment, and entrepreneurial activity. We
further document persistent long-term changes in local economic vibrancy. Because the displaced
workers are unlikely to abuse opioids, we interpret our results as spillover effects of
opioid abuse on non-users.

Keywords: Skilled Human Capital, Patent Inventor Mobility, Opioid Abuse, Innovation, Community Health Factors

JEL Classification: E24, G14, G18, I10, I15, O30, R2

Suggested Citation: Suggested Citation

Cornaggia, Kimberly and Hund, John and Pisciotta, Kevin and Ye, Zihan, Spillover Effects of Opioid Abuse on Skilled Human Capital and Innovation Activity (September 14, 2023). Available at SSRN: https://ssrn.com/abstract=4104835 or http://dx.doi.org/10.2139/ssrn.4104835