High-technology employment and R&D in cities: Heterogeneity vs specialization

Abstract

This paper uses data from high technology industry clusters in U.S. cities to establish a strong positive relationship between city, industry cluster (and university) R&D, and subsequent employment in the same industry cluster and city. Perhaps surprisingly, in view of recent results that heterogeneity favors growth, we found no evidence for spillovers from R&D in any one high technology cluster to employment in any other. However, spillover benefits from specialization appear microeconomically plausible in our context, though the data panel is too short to obtain any conclusions regarding growth.