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Relatedness and Technological Change in Cities: The rise and fall of technological knowledge in U.S. metropolitan areas from 1981 to 2010

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  • Ron Boschma
  • Pierre-Alexandre Balland
  • Dieter Franz Kogler

Abstract

This paper investigates by means of USPTO patent data whether technological relatedness was a crucial driving force behind technological change in 366 U.S. cities from 1981 to 2010. Based on a three-way fixed effects model, we find that the entry probability of a new technology in a city increases by 30 percent if the level of relatedness with existing technologies in the city increases by 10 percent, while the exit probability of an existing technology decreases by 8 percent.

Suggested Citation

  • Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2013. "Relatedness and Technological Change in Cities: The rise and fall of technological knowledge in U.S. metropolitan areas from 1981 to 2010," Papers in Evolutionary Economic Geography (PEEG) 1316, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2013.
    • Handle: RePEc:egu:wpaper:1316
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    More about this item

    Keywords

    relatedness; technological change; urban diversification; U.S. cities; technology space;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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