Innovation and Regional Development: The Impact of Patenting on Labor Market Outcomes

Research output: Preprint/Documentation/ReportWorking paper

Contributors

Abstract

We estimate the impact of technological innovation on regional labor market outcomes. Our identification strategy exploits pre-reunification complementarities in innovation between East and West Germany. We employ individual-level data from the German Socio-Economic Panel to analyze labor market outcomes. Individuals# income in West German counties with pre-reunification complementarities increased by 1.3%-1.5% on average after reunification. The effect is amplified when disentangling for different occupations: Income increases by 27%-29%, self-employment increases significantly, and unemployment remains unaffected. The use of East German know-how in West German patents after reunification is driven by the migration of East German inventors to West German counties.

Details

Original languageEnglish
Publication statusPublished - 13 Nov 2024
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Keywords

Sustainable Development Goals

Keywords

  • Economic Development, Patent Analysis, Knowledge Complementarities, Occupations, German Reunification