Industrial renewal in the 21st century: Evidence from US cities
Industrial renewal in the 21st century: evidence from US cities. Regional Studies. Where and why do new industries emerge? Using revisions of official industrial classifications, this paper documents the appearance of new industries in the US economy between 2000 and 2010 stemming directly from technological advances. Examining differences in new industry creation across cities, this paper shows that new industries mainly emerge in human capital abundant places and cities that specialize in industries that demand similar skills. Instrumental variables estimates that exploit the location of 19th-century land-grant colleges as an instrument for contemporary differences in human capital assigns a causal interpretation to these results.