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Concentration and Agglomeration of IT Innovation and Entrepreneurship: Evidence from Patenting

Chris Forman, Avi Goldfarb


This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book The Role of Innovation and Entrepreneurship in Economic Growth, Aaron Chatterji, Josh Lerner, Scott Stern, and Michael J. Andrews, editors
Conference held January 7-8, 2020
Forthcoming from University of Chicago Press

Information technology (IT) matters to prosperity. The top patenters are increasingly IT companies. We use data on US patents to document four trends in IT patenting. First, firm-level concentration in IT patenting is increasing over time. Second, geographic concentration in IT patenting is increasing over time. Third, most technology classes experienced a decline in new patenters from 1980 to 2000. This was not true of new IT patents. Since 2000, the trend in new IT patenters looks like other classes and is declining over time. Fourth, there is increased geographic concentration of new IT patenters. We do not identify the reasons behind these trends nor whether they are related to overall changes in industry concentration, agglomeration, or prosperity.

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This chapter first appeared as NBER working paper w27338, Concentration and Agglomeration of IT Innovation and Entrepreneurship: Evidence from Patenting, Chris Forman, Avi Goldfarb
 
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