The Effects of Terrorist Attacks on Inventor Productivity and Mobility
45 Pages Posted: 8 Feb 2021 Last revised: 2 Mar 2021
Date Written: February 11, 2021
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: Suggested Citation