NATIONAL BUREAU OF ECONOMIC RESEARCH
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Concentration and Agglomeration of IT Innovation and Entrepreneurship: Evidence from Patenting

Chris Forman, Avi Goldfarb

NBER Working Paper No. 27338
Issued in June 2020
NBER Program(s):Productivity, Innovation, and Entrepreneurship

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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Document Object Identifier (DOI): 10.3386/w27338

Forthcoming: Concentration and Agglomeration of IT Innovation and Entrepreneurship: Evidence from Patenting, Chris Forman, Avi Goldfarb. in The Role of Innovation and Entrepreneurship in Economic Growth, Chatterji, Lerner, Stern, and Andrews. 2020

 
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