Innovation and the Growth of Cities
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Innovation and the Growth of Cities

Zoltán J. Ács

This new and original book by Zoltan Acs explores the relationship between industrial innovation and economic growth at the regional level, and reaches conclusions as to why some regions grow but others decline. While the analysis draws on industrial organization, labor economics, regional science, geography and entrepreneurship, the book focuses on innovation and the growth of cities by the use of endogenous growth theory.
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Appendix F: List of Variables

Zoltán J. Ács


Variable K R U POP VA RANK EDEXP ENRL U50 U75 R50 R75 LQ BUS LARGE FORTUNE NP FS MP TO Definition Knowledge measured by either patent or innovation counts. Industrial R&D measured by either annual expenditures or R&D employment. University Research and Development expenditures measured by the National Science Foundation. State population. Tacit knowledge as measured by the extent of industry presence in the MSA. At the MSA level the overall academic quality of high technology departments. Total educational expenditures at universities. A proxy for size and total employment at universities. A spatial lag for university research of 50 miles. A spatial lag for university research of 75 miles. A spatial lag for industrial research of 50 miles. A spatial lag for industrial research of 75 miles. Location quotient for high-tech employment. Employment in business services (SIC 73). Percentage of large firms (firms with more than 500 employees). Dummy variable for at least 10 Fortune 500 corporations. New product innovation rate in 1982 defined as new product innovations divided by total firm innovations. Firm size defined as firm size for firm i in industry j divided by the employment of the largest firm in industry j in 1975. Monopoly profits measured as net income in 1975 divided by total company sales in 1975. Technological opportunity measured as research and development expenditures in 1975 divided by total company sales in 1975. Total 1982 innovations divided by total assets. Ratio of R&D expenditures divided by 1982 sales. 215...

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