Working Paper: NBER ID: w31724
Authors: William R. Kerr
Abstract: We study the relationship between firm centralization and organizational reproduction in satellite locations. For decentralized firms, the ethnic compositions of inventors in satellite locations mostly resemble their host cities, with little link to the inventor composition of their parent firms' R&D headquarters. For highly centralized firms, by contrast, organizational reproduction has an explanatory power equal to half or more of the host city effect. Reproduction is strongest when a firm exhibits a hands-on approach to the satellite facility, such as cross-facility team collaboration or internal talent mobility.
Keywords: No keywords provided
JEL Codes: F22; F23; J61; L22; L25; M51; O31; O32; R11; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| R&D centralization (O32) | organizational reproduction (L23) |
| increase in share of ethnic inventors at R&D headquarters (O39) | increase in share of ethnic inventors at satellite location (O36) |
| organizational reproduction (L23) | ethnic composition of inventors in satellites (O39) |
| legacy ethnic composition of R&D headquarters (O39) | ethnic composition of inventors in satellites (O39) |
| ethnic composition of local environment (R23) | organizational reproduction (L23) |