Can You, and Should You, Buy an Innovation Hub?

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Abstract/Contents

Abstract: This paper offers some of the first empirical analysis on the impact of innovation hubs on firm and local performance. The Silicon Valley innovation hub is frequently cited as evidence for the success innovation hubs bring through spillover effects which boost local economies. I exploit Microsoft’s 1979 relocation from Albuquerque, New Mexico, to Bellevue, Washington, to analyze the effect of the Seattle innovation hub on its local economy. Using a difference-in-difference approach with quasi-synthetic controls, I find three main results. First, there is no strong evidence for Microsoft triggering the development of a Seattle innovation hub. Second, to the extent to which the Seattle Hub exists, it does not perform significantly better when looking at firm and local performance. Finally, there is evidence that innovation hubs incur higher rent that potentially constrains growth.

Type of resource	text
Date created	May 25, 2019

Author	Yeung, Vicky
Primary advisor	Bloom, Nicholas

Related item	Title 2019 Firestone Medal for Excellence in Undergraduate Research
Location	https://purl.stanford.edu/fb996my0191

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License: This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

Preferred Citation: Yeung, Vicky. (2019). Can You, and Should You, Buy an Innovation Hub? . Stanford Digital Repository. Available at: https://purl.stanford.edu/fb996my0191

Stanford University, Department of Economics, Honors Theses

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