The local innovation spillovers of listed firms

Adrien Matray

Research output: Contribution to journalArticlepeer-review

48 Scopus citations


This paper provides evidence of local innovation spillovers (i.e., innovation by one firm fostering innovation by neighboring firms). First, I document that exogenous shocks to innovation by listed firms affect innovation by private firms in the same geographical area and that such local innovation spillovers decline rapidly with distance. Second, these local innovation spillovers stem from knowledge diffusing locally through two channels: learning across local firms and inventors moving from their employer to both existing firms and newly started spin-outs. Finally, I study the two-way relations between innovation spillovers and the availability of capital. I find that local innovation spillovers cause venture capital funds from outside the area to invest more in the local area, and that capital availability amplifies local innovation spillovers.

Original languageEnglish (US)
Pages (from-to)395-412
Number of pages18
JournalJournal of Financial Economics
Issue number2
StatePublished - Aug 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


  • Financing of innovation
  • Innovation spillovers
  • Knowledge diffusion
  • Patents


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