Firm Size Diversity and Regional Innovation ∗

نویسندگان

  • Ajay Agrawal
  • Iain Cockburn
  • Alberto Galasso
  • Alexander Oettl
چکیده

Why are some regions more innovative than others? We examine within– and across–region variation in the coexistence of large and small labs. Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm’s overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these two localized externalities and their impact on regional innovation. Our model predicts innovation output is higher where large and small labs coexist. Using MSA-level patent data during the period 1975-2000, we report evidence consistent with the theory. JEL Classifications: 047, 018, L16.

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تاریخ انتشار 2011