Working Paper # 0079 Understanding Inputs into Innovation : Do Cities Substitute for Internal Firm Resources ?

@inproceedings{Goldfarb2006WorkingP,
  title={Working Paper # 0079 Understanding Inputs into Innovation : Do Cities Substitute for Internal Firm Resources ?},
  author={Avi Goldfarb and Shane Greenstein},
  year={2006}
}
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… CONTINUE READING