Economics
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The Geography of Innovation - How disruptive technologies diffuse
11th August 2021
This new paper from Bloom et al from Stanford provides an overview of how original pioneer locations of disruptive technologies such as AI and broadband retain their initial advantages over many years running into decades.
One possibility is that the original pioneers become major employers and attract even more highly skilled workers to where new jobs linked to these innovations are being created.
Another is that established firms based elsewhere move jobs to the innovation hubs.
Clusters of disruptive businesses often provide a fertile environment for start-ups many of which are founded by former employees of established and dominant businesses.
"locations where initial discoveries were made [retained] their leading positions among high-paying positions for decades. These tech hubs are more likely to arise in areas with universities & high-skilled labour pools.'
The paper is good enrichment reading for those interested in the economics of agglomeration, innovation clusters (often built around universities and science parks) and the economics of cities.
High-skilled jobs associated with disruptive technologies remain strongly focused on the original pioneer locations.
— Centre for Economic Performance (@CEP_LSE) August 10, 2021
Nicholas Bloom, Tarek Hassan, Aakash Kalyani, Josh Lerner, Ahmed Tahoun@voxeu @POID_LSE https://t.co/Ht6MQbd46h
"high-skilled jobs associated with disruptive technologies remain strongly focused on the original pioneer locations ... it takes almost 40 years for high-skilled job postings to fully disperse from these pioneer locations."https://t.co/jLrYrXgzdh
— Richard Florida (@Richard_Florida) August 10, 2021
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