Taking Organizations Seriously in Understanding the Geography of Invention

Abstract

Large organizations mold technological advance in countries and even more so in cities. External economies of scale and invention are closely linked, but the organizational strategies of individual firms cannot be overlooked in understanding the geography of patenting. Market structures and inventive intensity are properties of complex systems featuring endogenous multi-directional interactions. Oligopolistic firms are pivotal in many large inventive cities, especially outside Silicon Valley. The more these firms dominate technological advance the higher the patenting rate. Less inventive large cities are frequently reliant on individuals and employees of universities and federal agencies to procure grants. Some implications of organizational structure and granularity for urban policy are outlined.