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
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Englisch
- Erschienen in
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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
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Objekttyp
- Arbeitspapier
Beteiligte
- Forman, Chris
- Goldfarb, Avi
- Greenstein, Shane M
- Northwestern University, Center for the Study of Industrial Organization (CSIO)
Entstanden
- 2006