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The Long Run Effects of R&D Place-based Policies: Evidence from Russian Science Cities

Schweiger, Helena and Stepanov, Alexander and Zacchia, Paolo The Long Run Effects of R&D Place-based Policies: Evidence from Russian Science Cities. Working Paper (Submitted)

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We study the long run effects of a unique historical place-based policies targeting R&D: the creation of “Science Cities” in former Soviet Russia. The establishment of Science Cities and the criteria for selecting their location were largely guided by political and military-strategic considerations. We compare current demographic and economic characteristics of Science Cities to those of appropriately matched localities that were similar to them at the time of their establishment. We find that in the modern Russian economy, despite the massive cuts of governmental support to R&D that followed the dissolution of the USSR, Science Cities host more high-skilled workers and more developed R&D and ICT sectors; are the origin of more international patents; and generally appear to be more productive and economically developed. Within a spatial equilibrium framework, we interpret these findings as the result of the interaction between persistence and agglomeration forces. Furthermore, we rule out alternative explanations that have to do with the differential use of public resources, and we find limited support for a case of equilibrium reversion. Finally, by analyzing firm-level data we obtain evidence in favor of spillover effects with a wide spatial breadth.

Item Type: Working Paper (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Research Area: Economics and Institutional Change
Depositing User: Caterina Tangheroni
Date Deposited: 08 Mar 2018 10:25
Last Modified: 08 Mar 2018 10:45
URI: http://eprints.imtlucca.it/id/eprint/3971

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