UNIVERSITY INNOVATION AND LOCAL ECONOMIC GROWTH

Naomi Hausman*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

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.

Original languageAmerican English
Pages (from-to)718-735
Number of pages18
JournalReview of Economics and Statistics
Volume104
Issue number4
DOIs
StatePublished - 1 Jul 2022

Bibliographical note

Publisher Copyright:
© 2020 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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