Macroeconomics Seminar Series. "The Geography of Innovative Firms", joint work with Craig A. Chikis and Benny Kleinman
Published: 12 February 2025
20 March 2025. Professor Marta Prato, Bocconi University
Professor Marta Prato, Bocconi University
"The Geography of Innovative Firms", joint work with Craig A. Chikis and Benny Kleinman
Thursday, 20 March 2025. 15:00-16:30
Room 355, Gilbert Scott Building
Abstract
Firms that spread innovation activities across multiple local markets account for most U.S. innovation output. How does this geographical structure influence aggregate innovation and growth? Should governments encourage innovative firms to expand their geographical reach to more local markets? To answer these questions, we develop an endogenous growth model that incorporates multi-market innovative firms and local knowledge spillovers across innovative plants. We show that firms may be either overly concentrated or excessively dispersed across locations, depending on the elasticity of innovation to R&D inputs and the sensitivity of knowledge diffusion to a firm's local presence. Estimating the model using data on firm R&D locations, patents, and citation networks, we find that U.S. innovation firms are excessively geographically concentrated. Our quantitative analysis suggests that modest incentives for greater geographical expansion could enhance growth and potentially reduce regional disparities.
Bio
I am an Assistant Professor of Economics at Bocconi University. I am a Research Affiliate at CEPR and an Affiliate at IGIER.
My research examines long-run macroeconomic trends in growth and inequality. My work on economic growth investigates how the allocation of innovative human capital impacts innovation and productivity, both within and across countries, and how policy can enhance economic performance by improving talent allocation. My research on long-run inequality connects to residential segregation and intergenerational mobility, studying policies that can tackle inequality and segregation while improving welfare.
Prior to joining Bocconi, I was a Cowles Post-Doctoral Fellow at Yale University. I obtained a Ph.D. in Economics from the University of Chicago in 2022. I hold a BS and an MSc in Economics and Social Sciences from Bocconi University.
For further information, please contact business-seminar-series@glasgow.ac.uk.
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First published: 12 February 2025