Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38699 
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dc.contributor.authorForman, Chrisen
dc.contributor.authorGoldfarb, Avien
dc.contributor.authorGreenstein, Shane Men
dc.date.accessioned2010-08-13T08:26:57Z-
dc.date.available2010-08-13T08:26:57Z-
dc.date.issued2006-
dc.identifier.urihttp://hdl.handle.net/10419/38699-
dc.description.abstractWe 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.en
dc.language.isoengen
dc.publisher|aNorthwestern University, Center for the Study of Industrial Organization (CSIO) |cEvanston, ILen
dc.relation.ispartofseries|aCSIO Working Paper |x0079en
dc.subject.jelR30en
dc.subject.jelO33en
dc.subject.jelL86en
dc.subject.ddc330en
dc.titleUnderstanding inputs into innovation: Do cities substitute for internal firm resources?-
dc.type|aWorking Paperen
dc.identifier.ppn574936165en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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