The Geography of Innovative Firms (nber.org) 22
The abstract of a paper featured on NBER: Most U.S. innovation output originates from firms that operate R&D facilities across multiple local markets. We study how this geographic structure influences aggregate innovation and growth, and whether it is socially optimal. First, we develop an endogenous growth model featuring multi-market innovative firms that generate knowledge spillovers to geographically proximate firms. In equilibrium, firms may operate in too few or too many local markets, depending on how sensitive are the local spillovers they generate to their local size. Second, to quantify these effects, we link the model to data on firms' R&D locations, patents, and citation networks. Using an event-study design, we show that firms' spatial expansion increases spillovers to other firms and estimate how these spillovers depend on a firm's local footprint. Our estimates imply that U.S. innovative firms operate in too few markets relative to the social optimum. Third, using quantitative counterfactuals, we find that policies promoting broader spatial scope yield larger welfare gains than standard R&D subsidies. Moreover, unlike R&D subsidies, such policies can also reduce regional inequality.
I guess ... (Score:2)
Our estimates imply that U.S. innovative firms operate in too few markets relative to the social optimum.
Re:I guess ... (Score:5, Informative)
Re:Beep Beep Beep Bullshit Detector Is Off The Cha (Score:5, Funny)
Article is full of executive buzzwords, who let Dilbert's Boss out?
Total bullshit. (Score:5, Insightful)
First, they start out with poor definitions that many would disagree with. I would contest that innovation NEVER comes from "firms that operate R&D facilities across multiple local markets." Both 'operates R&D facilities' and 'multiple local markets' require large firms and innovation usually occurs in small firms and then they miraculously beat the big boys, getting larger and larger until they eventually start an R&D department, and expand to multiple markets.
Second, the synopsis was full of the worst kind of business jargon - the 'excess words for the sake of excess words' rather than technical terms to be specific.
This paper appears to be written by people whose egos are more valuable than their degrees.
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The "excess words" thing kind of feels at home on slashdot, don't you think??? There are a few of those around here.
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First, they start out with poor definitions that many would disagree with. I would contest that innovation NEVER comes from "firms that operate R&D facilities across multiple local markets."
I would also disagree with your assertion. Innovative ideas tend to come from individuals, and those individuals comes from many different situations, such as lone investors, startups, or part of a multinational conglomerate.
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It is not impossible for innovation to come from large corporations. But:
1) When an individual working for a large corp. comes up with a good idea, let alone a truly innovative one, the bureaucracy of the corp impairs the innovation. Sometime it refuses to try it (aka Polaroid inventing the digital camera then burying it to protect their film cameras), others it 'fixes' the idea to the point it becomes useless.
OR
2) The innovative individual realizes point 1 and also knows they can quit and try to make th
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Never met anyone who thinks is this way.
Seems to be just you.
Congratulations.
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I have met people that thinks this is the way. You appear to be inexperienced and young.
taking measure of the unmeasurable (Score:2)
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\o/ (Score:1)
How about a study of innovation in securing grants for research?
They do, do they? (Score:2)
"Our estimates imply that U.S. innovative firms operate in too few markets relative to the social optimum."
I'm curious what the 'social optimum' is, and who defined it according to what standard.
Techno babble garbage (Score:3)
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Synerjizz: what Dilbert's boss produces when aroused.
The summary is written in English (Score:2)
I recognize the words. But wow, that was difficult to read! I almost needed AI to translate.
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Why not?
They probably used an "AI" to write it.
Just what did they just say..in layman terms. (Score:2)
Let me guess (Score:2)