Creatively Destructive Hurricanes: Do Disasters Spark Innovation?

Abstract We investigate whether disasters can lead to innovation. construct a US county-level panel of hurricane damages using climate data, tracks, and wind field model match these patent applications by the location their inventor over last century in United States. examine both general innovation patents that explicitly mention terms ’hurricane’ or ’storm.’ In line with current literature hypothesizes innovative activity driven shocks, particular intended mitigate future we find hurricanes temporary boost damage-mitigating few years after event. However, also show there is long-term, lasting two decades, reduction damaging storm. conclude hurricanes, possibly other types disasters, cannot be viewed as ’benefit disguise,’ events are unlikely generate longer-term beneficial dynamics an adversely affected location.