Working Paper: CEPR ID: DP8537
Authors: Otto Toivanen; Lotta Väänänen
Abstract: Modern growth theory puts invention on the center stage. Inventions are created by individuals, raising the question: can we increase number of inventors? To answer this question, we study the causal effect of M.Sc. engineering education on invention, using data on U.S. patents? Finnish inventors and the distance to the nearest technical university as an instrument. We find a positive effect of engineering education on the propensity to patent, and a negative OLS bias. Our counterfactual calculation suggests that establishing 3 new technical universities resulted in a 20% increase in the number of USPTO patents by Finnish inventors.
Keywords: ability bias; citations; education; engineers; growth; innovation; invention; inventors; patents
JEL Codes: I21; J24; O31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| distance to the nearest technical university (R49) | likelihood of obtaining a university-level engineering degree (D29) |
| university engineering education (A22) | propensity to patent (O34) |
| establishing three new technical universities (I23) | number of patents obtained by Finnish inventors (O34) |