The Effects of Terrorist Attacks on Inventor Productivity and Mobility

45 Pages Posted: 8 Feb 2021 Last revised: 2 Mar 2021

See all articles by Eliezer M. Fich

Eliezer M. Fich

Drexel University - Department of Finance

Tung Nguyen

Alliance Manchester Business School

Dimitris Petmezas

Durham University Business School

Date Written: February 11, 2021

Abstract

We examine the causal effects of terrorism on inventor productivity and mobility. During the five-year window after terrorist attacks, inventors close to the strikes are more likely to move to distant companies. While the inventors that continue working for firms near the attacks exhibit a drastic productivity decline, those that relocate to faraway companies do not. These results prove robust to alternative specifications and numerous controls including the influence of the 9/11 attacks. Our findings provide novel insights about the impact of shocks that distort human capital productivity and promote the mobility and reallocation of specialized resources among firms.

Keywords: Terrorism, Corporate Innovation, Patents, Citations, Inventor Productivity, Inventor Mobility

JEL Classification: G41, J24, J28, J61, O30

Suggested Citation

Fich, Eliezer M. and Nguyen, Tung and Petmezas, Dimitris, The Effects of Terrorist Attacks on Inventor Productivity and Mobility (February 11, 2021). Available at SSRN: https://ssrn.com/abstract=3747554 or http://dx.doi.org/10.2139/ssrn.3747554

Eliezer M. Fich

Drexel University - Department of Finance ( email )

LeBow College of Business
3220 Market Street – 11th Floor
Philadelphia, PA 19104
(215) 895-2304 (Phone)

Tung Nguyen

Alliance Manchester Business School ( email )

AMBS Crawford House
Booth Street West
Manchester, Greater Manchester, M15 6PB
United Kingdom

HOME PAGE: http://tung-dn.github.io/index.html

Dimitris Petmezas (Contact Author)

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

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