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The Diffusion of New Technologies

Author

Listed:
  • Aakash Kalyani

    (Federal Reserve Bank of St. Louis)

  • Nicholas Bloom

    (Stanford University)

  • Marcela Carvalho

    (Harvard University)

  • Tarek Hassan

    (Boston University)

  • Josh Lerner

    (Harvard University)

  • Ahmed Tahoun

    (London Business School)

Abstract

We identify phrases associated with novel technologies using textual analysis of patents, job postings, and earnings calls, enabling us to identify four stylized facts on the diffusion of jobs relating to new technologies. First, the development of economically impactful new technologies is geographically highly concentrated, more so even than overall patenting: 56% of the most economically impactful technologies come from just two U.S. locations, Silicon Valley and the Northeast Corridor. Second, as the technologies mature and the number of related jobs grows, hiring spreads geographically. But this process is very slow, taking around 50 years to disperse fully. Third, while initial hiring in new technologies is highly skill biased, over time the mean skill level in new positions declines, drawing in an increasing number of lower-skilled workers. Finally, the geographic spread of hiring is slowest for higher-skilled positions, with the locations where new technologies were pioneered remaining the focus for the technology's high-skill jobs for decades.

Suggested Citation

  • Aakash Kalyani & Nicholas Bloom & Marcela Carvalho & Tarek Hassan & Josh Lerner & Ahmed Tahoun, 2024. "The Diffusion of New Technologies," Working Papers Series inetwp222, Institute for New Economic Thinking.
    • Handle: RePEc:thk:wpaper:inetwp222
    DOI: 10.36687/inetwp222
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    Keywords

    Employment; Geography; Innovation; R and D;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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