Firm decline and the mobility of US inventors, 1976–2015

Abstract

Because innovation is a key driver of economic growth, the mobility of inventors is one important consideration for firms and policy makers. While considerable research examines the factors that influence inventor mobility in general, this research traces US inventors in response to firm decline. Using regression to model inventors’ probability of patenting in a new firm or moving to a new city, I find that the most skilled and well-connected inventors have the easiest transition after leaving a struggling company, but they are also most likely to move away to seek re-employment. After the decline of a major firm, inventors are less likely to move away from cities with more diverse regional economies.