Post-disaster fluctuations in innovation: evidence from Hurricane Katrina
Files
First author draft
Date
2022-12
Authors
Ballesteros, Luis
Version
First author draft
OA Version
Citation
L. Ballesteros. 2022. "Post-disaster fluctuations in innovation: Evidence from Hurricane Katrina" Management Science.
https://doi.org/10.5465/AMBPP.2022.21
Abstract
Theoretically motivated by evidence that large exogenous shocks can produce enduring fluctuations in economic behavior, this study shows that counties affected by Hurricane Katrina exhibit substantial post-disaster increases in the quantity and quality of patenting compared to unaffected counterfactual counties. The significance of the matched-sample difference-in-differences estimates rises in damage severity, persists up to 10 years, and is robust to factors such as a post-disaster economic rebound, changes in the demand for specific innovation, aid and investment, wealth, education, and traditional explanations of innovative activity, such as firm R&D, institutions and market factors, but enhanced by inventor density and collaboration. Using georeferenced histories of inventors, the analyses trace the “Katrina effect” and control for selective migration and company affiliation. The findings point to an understudied driver of the geography of innovation.