TY - JOUR
T1 - UNIVERSITY INNOVATION AND LOCAL ECONOMIC GROWTH
AU - Hausman, Naomi
N1 - Funding Information: Because universities receiving more federal research funding before Bayh-Dole had a larger research base opened to commercialization, I additionally estimate differential area growth according to local university funding attracted in the several years before the act was passed. Further, combining this cross-university variation with the strategy above, I measure the extent to which federal funding magnifies local between-industry growth differences, again holding geography fixed. Detailed funding data by agency and university facilitates estimation for technological areas especially closely tied to industry, such as those funded by the Department of Defense (DOD) and the National Institutes of Health (NIH). Funding Information: I am grateful to Ed Glaeser, Larry Katz, Josh Lerner, and Scott Stern for many helpful discussions and to Bill Kerr for assistance with data access. I acknowledge support from the Ewing Marion Kauffman Foundation, the Center for American Political Studies at Harvard University, the U.S.-Israel Binational Science Foundation, and the Maurice Falk Institute at the Hebrew University of Jerusalem. Any opinions and conclusions expressed here are my own and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Publisher Copyright: © 2020 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
PY - 2022/7/1
Y1 - 2022/7/1
N2 - This paper identifies the extent to which knowledge from U.S. universities drives industry agglomeration. Establishment-level data indicate faster growth in employment, wages, and corporate innovation after the 1980 Bayh-Dole Act’s shock to the spread of innovation from universities in industries more closely related to the nearby university’s innovative strengths. Federal research funding amplified the effect. University knowledge spillovers strengthen with geographic proximity, density, and local skills. Consistent with spatial equilibrium models, the growth effect is driven by nearby entry in university-linked industries, especially of mul-tiunit expansions; these firms disproportionately partner with universities in R&D, transfer IP, and innovate.
AB - This paper identifies the extent to which knowledge from U.S. universities drives industry agglomeration. Establishment-level data indicate faster growth in employment, wages, and corporate innovation after the 1980 Bayh-Dole Act’s shock to the spread of innovation from universities in industries more closely related to the nearby university’s innovative strengths. Federal research funding amplified the effect. University knowledge spillovers strengthen with geographic proximity, density, and local skills. Consistent with spatial equilibrium models, the growth effect is driven by nearby entry in university-linked industries, especially of mul-tiunit expansions; these firms disproportionately partner with universities in R&D, transfer IP, and innovate.
UR - http://www.scopus.com/inward/record.url?scp=85133736115&partnerID=8YFLogxK
U2 - https://doi.org/10.1162/rest_a_01027
DO - https://doi.org/10.1162/rest_a_01027
M3 - Article
SN - 0034-6535
VL - 104
SP - 718
EP - 735
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 4
ER -
