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The Geography of Innovative Firms
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 endog...
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. Second, to quantify these effects, we link the model to data on firms' R&D locations, patents, and citation networks. Third, using quantitative counterfactuals, we find that policies promoting broader spatial scope yield larger welfare gains than standard R&D subsidies.
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