Urban Agglomeration and Firm Innovation : Evidence from Developing Asia
This paper examines the relationship between urban agglomeration and firm innovation using a recently developed dataset that consistently measures city boundaries across Asia together with geo-referenced firm-level data. It finds that the spatial d...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/148381637761830496/Urban-Agglomeration-and-Firm-Innovation-Evidence-from-Developing-Asia http://hdl.handle.net/10986/36637 |
| Summary: | This paper examines the relationship
between urban agglomeration and firm innovation using a
recently developed dataset that consistently measures city
boundaries across Asia together with geo-referenced
firm-level data. It finds that the spatial distribution of
innovation by firms is highly concentrated within countries.
Further, firms in larger cities have substantially higher
propensities to introduce product and process innovations
and undertake R&D activities, a result that holds for
subgroups of countries and even when the largest cities are
excluded from the analysis. Finally, the presence of high
quality universities and highly ranked engineering
departments in cities is positively associated with firm
innovation, lending support to the idea that the
accumulation of human capital locally is a key channel
through which urban agglomeration affects innovation. |
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