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The Impacts of Local Innovation and Innovative Spillovers on Employment and Population Growth in the U.S. Midwest

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  • Monschuk, Daniel C.
  • Miranowski, John A.

Abstract

The objective of this paper is to estimate the impact of regional innovation on employ-ment and population growth in the U.S. Midwest. A measure of effective local innovation is created by fitting a first-order spatial autoregressive model to create a measure of regional innovation using patents. In the second stage, employment and population growth are explained as a function of effective innovation plus other growth related characteristics using a spatial error model. Using a spatial bootstrap routine to infer parameter significance, we find local innovative activity is positively associated with employment growth during the period 1990-2005, although rural and agriculturally dependent counties remain at a disadvantage. Population growth is also positively associated with effective innovation, although to a lesser degree.

Suggested Citation

  • Monschuk, Daniel C. & Miranowski, John A., 2010. "The Impacts of Local Innovation and Innovative Spillovers on Employment and Population Growth in the U.S. Midwest," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1), pages 1-10.
    • Handle: RePEc:ags:jrapmc:132441
    DOI: 10.22004/ag.econ.132441
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    2. Khatiwada, Lila K., 2014. "Modeling and Explaining County-level Prosperity in the U.S," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).

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