How Do Travel Costs Shape Collaboration?

Working Paper: NBER ID: w24780

Authors: Christian Catalini; Christian Fonsrosen; Patrick Gaul

Abstract: We develop a simple theoretical framework for thinking about how geographic frictions, and in particular travel costs, shape scientists' collaboration decisions and the types of projects that are developed locally versus over distance. We then take advantage of a quasi-experiment — the introduction of new routes by a low-cost airline — to test the predictions of the theory. Results show that travel costs constitute an important friction to collaboration: after a low-cost airline enters, the number of collaborations increases between 0.3 and 1.1 times, a result that is robust to multiple falsification tests and causal in nature. The reduction in geographic frictions is particularly beneficial for high quality scientists that are otherwise embedded in worse local environments. Consistent with the theory, lower travel costs also endogenously change the types of projects scientists engage in at different levels of distance. After the shock, we observe an increase in higher quality and novel projects, as well as projects that take advantage of complementary knowledge and skills between sub-fields, and that rely on specialized equipment. We test the generalizability of our findings from chemistry to a broader dataset of scientific publications, and to a different field where specialized equipment is less likely to be relevant, mathematics. Last, we discuss implications for the formation of collaborative R&D teams over distance.

Keywords: travel costs; collaboration; scientific research; geographic frictions

JEL Codes: L93; O18; O31; O33; R4

Causal Claims

Cause	Effect
travel costs (R41)	collaboration rates (D26)
lower travel costs (R48)	benefit for high-quality scientists in worse local environments (D29)
lower travel costs (R48)	changes in types of projects (O22)
reduction in travel costs (R41)	enhanced quality of projects (L15)