Tracing mobile inventors. The causality between inventor mobility and inventor productivity

Abstract

This paper analyzes the causality between inventor productivity and inventor mobility. Whereas existing research implicitly assumes causality to point in one direction, this study ex-ante allows for a simultaneous relationship. To deal with the expected endogeneity problem, instrumental variables techniques will be employed. Additionally a quasi-experimental approach is used to explore the effect of a specific move on inventive performance. Results show that mobile inventors are more than four times as productive as non-movers. Whereas mobility increases productivity, an increase in productivity decreases the number of moves. In addition, difference-in-differences estimation reveals that inventors increase the value of their patent applications in the post-move period