Subway, Collaborative Matching, and Innovation

Yumi Koh, Jing Li and Jianhuan Xu
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Yumi Koh: University of Seoul
Jing Li: Singapore Management University
Jianhuan Xu: Singapore Management University

The Review of Economics and Statistics, 2025, vol. 107, issue 2, 476-493

Abstract: Using rapid expansion of the Beijing subway from 2000 to 2018, we analyze its impact on collaborative matches in innovations. We find that an hour reduction in travel time between a pair of locations in Beijing brought 14.85% to 37.69% increase in collaborated patents. Far-apart location pairs were more affected, and the local average causal response is approximately 34.92% to 82.29%. The effect is mainly driven by increased matches among highly productive innovators. The entry of new innovators, relocation of existing innovators, and collaborations among low-productive innovators also contribute to the increase in collaborative matches, especially in the long run.

Date: 2025
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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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