January 2021
Article
Journal of Urban Economics

Commuting and Innovation: Are Closer Inventors More Productive?

By: Hongyu Xiao, Andy Wu and Jaeho Kim

Format:Print

Abstract

We estimate the causal effect of workplace–home commuting distance on inventor productivity. We construct a novel panel of U.S. inventors with precisely measured workplace–home distances and inventor-level productivity. Our identification strategy exploits firm office relocations as exogenous variation in the commuting distance of inventors at the firms. We find a significant negative effect from commuting distance on inventor productivity: every 10 km increase in distance is associated with a 5% decrease in patents per inventor–firm pair per year and an even greater 7% decrease in patent quality. The highest-performing inventors suffer more from increased commuting distance. We discuss the implications of our findings in the light of recent trends around telecommuting and remote work during the COVID-19 pandemic.

Keywords

Commuting; Proximity; Inventors; Innovation; Relocation; Telecommuting; Geographic Location; Technological Innovation; Innovation and Management; Innovation Strategy; United States

Citation

Xiao, Hongyu, Andy Wu, and Jaeho Kim. "Commuting and Innovation: Are Closer Inventors More Productive?" Art. 103300. Journal of Urban Economics 121 (January 2021).