The Technological Resilience of U.S. Cities

We study the resilience of cities by analysing the relative capacity to sustain their production of technological knowledge in the face of adverse events. Using patent applications in 366 Metropolitan Statistical Areas in the USA from 1975 to 2002, we analyse the vulnerability and response of cities to technological crises, defined as periods of sustained negative growth in patenting activity. We find that the frequency, intensity and duration of technological crises vary considerably across American cities. Econometric analysis suggests that cities with knowledge bases that are diverse, flexible and proximate to technologies in which they do not currently possess comparative advantage tend to avoid technological crises, have limited downturns in patent production and recover faster from crisis events.