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Did the U.S. Fracking Boom Shale‐Shock Regional Patenting?

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  • Luyi Han
  • John V. Winters

Abstract

The shale boom of the early 21st century turned the U.S. into an energy powerhouse and significantly disrupted local economies with shale resources. This study examines the impacts of the U.S. shale boom on regional patenting at a commuting zone level. The shale boom may negatively affect patents if it crowds out labor and capital investments in other non‐energy industries. Our findings show that a one standard deviation increase in non‐vertical well density decreases patent intensity by 3.74% of the mean. Areas with higher drilling densities have lower levels of patented innovation compared to their counterfactuals. This paper contributes to the existing literature related to the “natural resource curse.” We provide new evidence based on regional patenting, which is an important indicator for regional innovation and long‐term economic growth.

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  • Luyi Han & John V. Winters, 2024. "Did the U.S. Fracking Boom Shale‐Shock Regional Patenting?," Growth and Change, Wiley Blackwell, vol. 55(4), December.
    • Handle: RePEc:bla:growch:v:55:y:2024:i:4:n:e12740
    DOI: 10.1111/grow.12740
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