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

66 Pages Posted: 11 May 2022 Last revised: 27 Sep 2023

See all articles by Kimberly Cornaggia

Kimberly Cornaggia

Pennsylvania State University - Department of Finance

John Hund

University of Georgia

Kevin Pisciotta

University of Kansas - School of Business

Zihan Ye

University of Tennessee

Date Written: September 14, 2023

Abstract

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

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

Kimberly Cornaggia

Pennsylvania State University - Department of Finance ( email )

306 Business Bldg
University Park, PA 16802
United States
814-865-2243 (Phone)
814-865-3362 (Fax)

HOME PAGE: http://directory.smeal.psu.edu/kjr15

John Hund

University of Georgia ( email )

Athens, GA 30602
United States

Kevin Pisciotta (Contact Author)

University of Kansas - School of Business ( email )

Capital Federal Hall
1654 Naismith Dr
Lawrence, KS 66045
United States

Zihan Ye

University of Tennessee ( email )

Haslam Business Building
453, 1000 Volunteer Blvd,
Knoxville, TN TN 37916
United States

HOME PAGE: http://https://sites.google.com/view/zihanye/home

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