Arbeitspapier

Understanding inputs into innovation: Do cities substitute for internal firm resources?

We examine whether there is a tradeoff between employing internal (firm) resources and purchased external (local) resources in process innovation. We draw on a rich data set of Internet investments by 86,879 U.S. establishments to examine decisions to invest in advanced Internet technology. We find evidence of localization of substitution. In particular, we show that the marginal contribution of internal resources is greater outside of a major urban area than inside one. Agglomeration is therefore less important for highly capable firms. When firms invest in innovative processes they act as if resources available in cities are partial substitutes for both establishment-level and firm-level internal resources.

Sprache
Englisch

Erschienen in
Series: CSIO Working Paper ; No. 0079

Klassifikation
Wirtschaft
Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Technological Change: Choices and Consequences; Diffusion Processes
Information and Internet Services; Computer Software

Ereignis
Geistige Schöpfung
(wer)
Forman, Chris
Goldfarb, Avi
Greenstein, Shane M
Ereignis
Veröffentlichung
(wer)
Northwestern University, Center for the Study of Industrial Organization (CSIO)
(wo)
Evanston, IL
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Forman, Chris
  • Goldfarb, Avi
  • Greenstein, Shane M
  • Northwestern University, Center for the Study of Industrial Organization (CSIO)

Entstanden

  • 2006

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