Local Vibrancy and Innovation Spillover

57 Pages Posted: 22 Mar 2023 Last revised: 8 Feb 2024

See all articles by Ani Manakyan Mathers

Ani Manakyan Mathers

Salisbury University - Department of Economics and Finance

Corey A. Shank

Miami University

Date Written: January 8, 2024

Abstract

We show evidence of local spillover effects in corporate innovation productivity. Specifically, we find that firms’ patent counts and patent citations are positively related to the innovation output of other local firms, including those firms in different industries. We rule out exogenous local area shocks and local social capital as the driver of this relationship and instead discuss the importance of local endogenous interactions, described as local vibrancy. Our evidence suggests that the quality of the local labor market is an important aspect of local vibrancy affecting innovation spillover. Specifically, we find that local spillover effects are concentrated in areas with high income, larger populations, greater educational attainment, and a greater concentration of technology-related businesses, suggesting that having a large and educated workforce with transferable technological skills are driving our spillover results.

Keywords: Innovation; Headquarters location; Knowledge spillover

JEL Classification: O30, R30

Suggested Citation

Mathers, Ani Manakyan and Shank, Corey, Local Vibrancy and Innovation Spillover (January 8, 2024). Available at SSRN: https://ssrn.com/abstract=4390038 or http://dx.doi.org/10.2139/ssrn.4390038

Ani Manakyan Mathers

Salisbury University - Department of Economics and Finance ( email )

Salisbury, MD 21801
United States

Corey Shank (Contact Author)

Miami University ( email )

Oxford, OH 45056
United States

HOME PAGE: http://coreyshank.com

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