Publication Type
Journal Article
Version
submittedVersion
Publication Date
11-2025
Abstract
How did COVID-19 affect the innovation advantages of dense locations? Using data on the universe of U.S. patent applications, we find that the density premium in the production of novel inventions declined by 18.5%-22.9% in 2020-2021 relative to its pre-pandemic level. Smartphone data on local mobility suggest that the drop in the frequency of local interactions can explain a significant portion of this effect. While COVID-19 resulted in a temporary setback in the innovation advantages of dense locations, the role of urban density in facilitating the exchange and recombination of ideas is unlikely to be persistently replaced by online communication.
Keywords
Innovation, Density, Cities, Novelty
Discipline
Economics | Regional Economics | Technology and Innovation
Research Areas
Applied Microeconomics
Publication
Economic Journal
ISSN
0013-0133
Identifier
10.1093/ej/ueaf068
Publisher
Oxford University Press
Embargo Period
1-9-2025
Citation
GAETANI, Ruben; HUANG, Naqun; Li, Jing; and YANG, Yanmin.
Are cities losing innovation advantages? Online versus face-to-face interactions. (2025). Economic Journal.
Available at: https://ink.library.smu.edu.sg/soe_research/2793
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1093/ej/ueaf068