Innovation and Regional Development: The Impact of Patenting on Labor Market Outcomes

Ali Onder, Sascha Schweitzer and Olga Tcaci
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Sascha Schweitzer: Reutlingen University
Olga Tcaci: TUD Dresden University of Technology

No 2024-07, Working Papers in Economics & Finance from University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group

Abstract: We estimate the impact of technological innovation on regional labor market outcomes. Our identification strategy exploits pre-reunification complementarities in innovation between East and West Germany. We employ individual-level data from the German Socio-Economic Panel to analyze labor market out- comes. Individuals’ income in West German counties with pre-reunification complementarities increased by 1.3%-1.5% on average after reunification. The effect is amplified when disentangling for different occupations: Income increases by 27%-29%, self-employment increases significantly, unemployment remains unaffected. The use of East German know-how in West German patents after reunification is driven by the migration of East German inventors to West German counties.

Keywords: Economic Development; Patent Analysis; Knowledge Complementarities; Occupations; German Reunification (search for similar items in EconPapers)
JEL-codes: J24 O31 O33 R11 (search for similar items in EconPapers)
Pages: 56
Date: 2024-11-08
New Economics Papers: this item is included in nep-geo, nep-ino, nep-knm, nep-lma, nep-tid and nep-ure
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Citations: View citations in EconPapers (2)

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