We study the long-run effects of historical place-based R&D policies: the creation of Science Cities in Soviet Russia. We compare current demographic and economic characteristics of Science Cities with those of localities that were similar to them at the time of their establishment. We find that in present-day Russia, Science Cities are more innovative and productive, host more highly skilled workers, and pay them higher salaries. We interpret these findings as the result of the interaction between persistence and agglomeration forces; we rule out explanations related to the differential use of public resources.
Schweiger, Helena, Alexander Stepanov, and Paolo Zacchia.
"The Long-Run Effects of R&D Place-Based Policies: Evidence from Russian Science Cities."
American Economic Journal: Economic Policy,
Wage Level and Structure; Wage Differentials
Professional Labor Markets; Occupational Licensing
Technological Change: Choices and Consequences; Diffusion Processes
Technological Change: Government Policy
Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Regional Development Planning and Policy