- This event has passed.
Tania Babina – Columbia Business School
17 January 2020 @ 10:00 am - 11:30 am
Tania Babina (Columbia), Asaf Bernstein (Colorado), Filippo Mezzanotti (Northwestern)
January 8, 2020
In a diﬀerences-in-diﬀerences design we provide the ﬁrst systematic evidence that distress from the Great Depression drove the single largest shift in innovative organization in U.S. history – from predominantly outside to inside the ﬁrm. Parallel trends prior to the shock, evidence of a drop within every major technology class, and consistent results using distress driven by commodity shocks all suggest a causal eﬀect of local distress. Despite this decline in patenting, innovation is quite resilient, with inventors moving into ﬁrms and the average quality of surviving patents rising so much there is no observable change in aggregate future citations.