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Monday, October 09, 2006

Friday's UTA Economics Seminar

Colleagues and Students:

This Friday, we host Avi Goldfarb from the University of Toronto. Avi will present his paper, "Understanding the Inputs into Innovation: Do Cities Substitute for Internal Firm Resources?" Note the time change. The paper is available at the workshop web site here and in the department office.

ABSTRACT
We examine whether there is a tradeoff between employing internal (firm) resources and purchased external (local) resources in process innovation. We draw on a rich data set of Internet investments by 86,879 U.S. establishments to examine decisions to invest in advanced Internet technology. We find evidence of localization of substitution. In particular, we show that the marginal contribution of internal resources is greater outside of a major urban area than inside one. Agglomeration is therefore less important for highly capable firms. When firms invest in innovative processes they act as if resources available in cities are partial substitutes for both establishment-level and firm-level internal resources.

Speaker: Avi Goldfarb from the University of Toronto
Topic: "Understanding the Inputs into Innovation: Do Cities Substitute for Internal Firm Resources?"
Date: Friday, Oct. 13
Time: 10:00AM-11:30AM
Room: COBA 609

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