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Lockdowns and Innovation: Evidence from the 1918 Flu Pandemic

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  • Enrico Berkes
  • Olivier Deschenes
  • Ruben Gaetani
  • Jeffrey Lin
  • Christopher Severen

Abstract

Does social distancing harm innovation? We estimate the effect of non-pharmaceutical interventions (NPIs)—policies that restrict interactions in an attempt to slow the spread of disease—on local invention. We construct a panel of issued patents and NPIs adopted by 50 large US cities during the 1918 flu pandemic. Difference-in-differences estimates show that cities adopting longer NPIs did not experience a decline in patenting during the pandemic relative to short-NPI cities, and recorded higher patenting afterward. Rather than reduce local invention by restricting localized knowledge spillovers, NPIs adopted during the pandemic may have better preserved other inventive factors.

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  • Enrico Berkes & Olivier Deschenes & Ruben Gaetani & Jeffrey Lin & Christopher Severen, 2020. "Lockdowns and Innovation: Evidence from the 1918 Flu Pandemic," NBER Working Papers 28152, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28152
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    Cited by:

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    2. Gopal Das & Shailendra Pratap Jain & Durairaj Maheswaran & Rebecca J. Slotegraaf & Raji Srinivasan, 2021. "Pandemics and marketing: insights, impacts, and research opportunities," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 835-854, September.
    3. Dahl, Christian Møller & Hansen, Casper Worm & Jensen, Peter Sandholdt & Karlsson, Martin & Kühnle, Daniel, 2023. "School Closures, Mortality, and Human Capital: Evidence from the Universe of Closures during the 1918 Pandemic in Sweden," CEPR Discussion Papers 18399, C.E.P.R. Discussion Papers.
    4. Hiroyasu Inoue & Kentaro Nakajima & Tetsuji Okazaki & Yukiko U. Saito, 2022. "Controlling Funds Allocation for the War: The Experience of Japan in the Late 1930s," CIRJE F-Series CIRJE-F-1192, CIRJE, Faculty of Economics, University of Tokyo.
    5. Torsten Heinrich & Jangho Yang, 2022. "Innovation in times of Covid-19," Papers 2212.14159, arXiv.org.
    6. Hou, Wenxuan & Li, Mao & Main, Brian G.M. & Liu, Xiaofan, 2023. "Pandemics and financial development: A lesson from the 1918 influenza pandemic," Journal of Corporate Finance, Elsevier, vol. 83(C).
    7. Hiroyasu Inoue & Kentaro Nakajima & Tetsuji Okazaki & Yukiko U. Saito, 2022. "The Role of Face-to-face Contact on Innovation: Evidence from the Spanish Flu Pandemic in Japan," CIGS Working Paper Series 22-007E, The Canon Institute for Global Studies.
    8. Heinrich, Torsten & Yang, Jangho, 2022. "Innovation in times of Covid-19," MPRA Paper 115809, University Library of Munich, Germany.
    9. Torsten Heinrich & Jangho Yang, 2022. "Innovation in times of Covid-19," Chemnitz Economic Papers 058, Department of Economics, Chemnitz University of Technology.

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    More about this item

    JEL classification:

    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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