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On the concentration of innovation in top cities in the digital age

Author

Listed:
  • Caroline Paunov

    (OECD)

  • Dominique Guellec

    (OECD)

  • Nevine El-Mallakh

    (Université Paris 1 Panthéon-Sorbonne)

  • Sandra Planes-Satorra

    (OECD)

  • Lukas Nüse

    (Bertelsmann Foundation)

Abstract

This paper investigates how digital technologies have shaped the concentration of inventive activity in cities across 30 OECD countries. It finds that patenting is highly concentrated: from 2010 to 2014, 10% of cities accounted for 64% of patent applications to the European Patent Office, with the top five (Tokyo, Seoul, San Francisco, Higashiosaka and Paris) representing 21.8% of applications. The share of the top cities in total patenting increased modestly from 1995 to 2014. Digital technology patent applications are more concentrated in top cities than applications in other technology fields. In the United States, which has led digital technology deployment, the concentration of patent applications in top cities increased more than in Japan and Europe over the two decades. Econometric results confirm that digital technology relates positively to patenting activities in cities and that it benefits top cities, in particular, thereby strengthening the concentration of innovation in these cities.

Suggested Citation

  • Caroline Paunov & Dominique Guellec & Nevine El-Mallakh & Sandra Planes-Satorra & Lukas Nüse, 2019. "On the concentration of innovation in top cities in the digital age," OECD Science, Technology and Industry Policy Papers 85, OECD Publishing.
    • Handle: RePEc:oec:stiaac:85-en
    DOI: 10.1787/f184732a-en
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    Citations

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    Cited by:

    1. Ahmet Faruk Aysan & Luis Carlos Castillo-Téllez & Dilek Demirbas & Mustafa Disli, 2021. "Foreign Trade, Education, And Innovative Performance: A Multilevel Analysis," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(3), pages 413-440, September.
    2. Fritsch, Michael & Wyrwich, Michael, 2021. "Is innovation (increasingly) concentrated in large cities? An international comparison," Research Policy, Elsevier, vol. 50(6).
    3. Wolfram F. Richter, 2022. "Taxing Multinational Enterprises: A Theory-Based Approach to Reform," CESifo Working Paper Series 10119, CESifo.
    4. Lundvall, Bengt-Åke & Rikap, Cecilia, 2022. "China's catching-up in artificial intelligence seen as a co-evolution of corporate and national innovation systems," Research Policy, Elsevier, vol. 51(1).
    5. Andrea Filippetti & Antonio Zinilli, 2023. "The innovation networks of city-regions in Europe: exclusive clubs or inclusive hubs?," Working Papers 63, Birkbeck Centre for Innovation Management Research, revised 08 Feb 2023.

    More about this item

    Keywords

    cities; digital technologies; geography of innovation; innovation; local knowledge spillovers; OECD countries; patenting;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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