Agglomeration and the Spatial Distribution of Creativity

Roland Andersson, John M. Quigley () and Mats Wilhelmsson ()
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Roland Andersson: Royal Institute of Technology

No 1069, Berkeley Program on Housing and Urban Policy, Working Paper Series from Berkeley Program on Housing and Urban Policy

Abstract: This paper analyzes the spatial distribution of "creativity" -- the production of new knowledge. We analyze commercial patents granted in Sweden during 1994-2001 using a panel of one hundred labor market areas which encompass the entire country. We relate patent activity to measures of localization and urbanization, to the industrial composition and size distribution of firms, and to the regional distribution of human capital. Our analysis confirms the importance of human capital and research facilities in stimulating regional patent output. Importantly, our results document the importance of agglomeration and spatial factors in influencing creativity: Patent activity is increased in larger and more dense labor markets and in regions in which a larger fraction of the labor force is employed in medium-sized firms. Our results also indicate that creativity is greater in labor markets with more diverse employment bases and in those which contain a larger share of national employment in certain industries, confirming the importance of urbanization and localization economies in stimulating creativity. Our quantitative results suggest that the urbanization of Sweden during the 1990s had an important effect upon the aggregate level of patent activity in the country, leading to increases of up to five percent in aggregate patents.

Keywords: Agglomeration (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-geo, nep-ino, nep-ipr and nep-ure
Date: 2006-07-13
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Related works:
Working Paper: Agglomeration and the Spatial Distribution of Creativity (2005)
Journal Article: Agglomeration and the spatial distribution of creativity (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:cdl:bphupl:1069

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