Seminar
The Local Innovation Spillovers of Listed Firms
Adrien Matray (HEC Paris)
Paul Woolley Research Initiative Seminar
IDEI, May 4, 2015, 12:30–14:00, room MF 323
Reference
Adrien Matray (HEC Paris), “The Local Innovation Spillovers of Listed Firms”, Paul Woolley Research Initiative Seminar, IDEI, May 4, 2015, 12:30–14:00, room MF 323.
Abstract
This paper provides evidence of local innovation spillovers, i.e. innovation by one firm fostering innovation by neighboring firms. First, I document that exogenous shocks to innovation by listed firms affect innovation by private firms in the same geographical area. I also find that such local innovation spillovers decline rapidly with distance. Second, I find that local innovation spillovers stem at least in part from knowledge diffusing locally through two channels: learning across local firms and inventors moving from their employer to both existing firms and newly started spin-outs. Finally, I study the two-way relationship between innovation spillovers and the availability of capital. I find that local innovation spillovers lead venture capital funds from outside the area to invest more in the local area, and that conversely capital availability amplifies local innovation spillovers.