Title

The Local Innovation Spillovers of Listed Firms

Author(s)

Adrien Matray Adrien Matray (Princeton University)

Abstract

This paper provides evidence of local innovation spillovers, i.e. innovation by one firm fostering innovation by neighboring firms. First, I document that exogenous shocks to innovation by listed firms affect innovation by private firms in the same geographical area. I also find that such local innovation spillovers decline rapidly with distance. Second, I find that local innovation spillovers stem at least in part from knowledge diffusing locally through two channels: learning across local firms and inventors moving from their employer to both existing firms and newly started spin-outs. Finally, I study the two-way relationship between innovation spillovers and the availability of capital. I find that local innovation spillovers lead venture capital funds from outside the area to invest more in the local area, and that conversely capital availability amplifies local innovation spillovers.

Creation Date

2017

Section URL ID

Paper Number

2017-7

URL

https://www.adrienmatray.com/uploads/1/2/5/1/125176898/spillover_listed_firms_round2.pdf

File Function

Jel

K41, L24, O31, O34

Keyword(s)

Capital, Firm, Firms, Innovation, Venture Capital

Suppress

false

Series

13