No 2014/32 The Technological Resilience of U.S. Cities

Abstract

We study the resilience of cities by analyzing their capacity to sustain the production of technology when facing adverse events. Patent applications for 366 U.S. Metropolitan Statistical Areas, spanning the period 1975 to 2002, are used to analyze the vulnerability and response of cities to technological crises. Crises are defined as periods of sustained negative growth in patenting activity. We find that the frequency, intensity and duration of technological crises vary considerably across American cities. We examine how the technological knowledge bases of cities, their network openness and institutional environment condition resilience. Econometric analysis suggests that cities with knowledge bases that are diverse, flexible and proximate to technologies in which they do not currently possess comparative advantage tend to avoid technological crises, have limited downturns in patent production and recover faster from crisis events.