New research provides ammunition for spreading federal R&D dollars beyond Silicon Valley. Economists Federica Coelli (EBRD) and Paul Pelzl (NHH Norwegian School of Economics) studied 2.5 million patents across 759 U.S. communities over 40+ years. Their finding: smaller urban areas innovate effectively when economies improve.
Current reality: Just 5% of U.S. communities produce 75% of all patents.
Share
By the numbers:
The boom effect:
8.3% increase in overall patents when oil/gas employment doubles
8.5% DECREASE in oil & gas patents during their own boom (the paradox)
2x stronger innovation response in non-metro vs. metro areas
1 additional patent per 100,000 residents during booms
Economic impacts:
... continue reading