Speaker: Jaehee Song (Colorado, Boulder) 

Paper Title: The Externalities of Innovative Startups: Impacts on Real Estate and Local Economy (joint with Walter D’Lima (Florida International University), Carlos Hurtado (U Richmond)) 

Abstract: This paper examines the impact of innovative startups on local real estate markets using nationwide datasets of patent applications, property-level repeat-sale transactions, and establishment-level business data, leveraging patent examiner leniency as an instrumental variable. Our findings show that innovative startups increase the annualized returns of nearby residential properties by 0.3 to 0.6 percentage points, and those of commercial properties and vacant land by approximately 0.5 percentage points. The effects are more pronounced for the first innovative startups in an area, with return increases of 1.5 to 2.1 percentage points, while additional startups still produce cumulative but smaller marginal effects. We provide evidence that indirect effects play an important role by increasing not only nearby patenting activity and establishments in the same sector, but also the number of establishments in different sectors surrounding innovative startups in longer term.

Registration Link: https://us06web.zoom.us/webinar/register/WN_75qXQV31QV6LTsjV0OnKMA 

Hope to see many of you there!