The Impact of the Opening of High-Speed Rail on Innovation

Author Name INOUE Hiroyasu (University of Hyogo) / NAKAJIMA Kentaro (Tohoku University) / SAITO Yukiko (Senior Fellow, RIETI)
Creation Date/NO. March 2017 17-E-034
Research Project Dynamics of Inter-organizational Network and Geography
Download / Links


This paper investigates how the reduction of the travel costs through improvement in transportation infrastructure lead to knowledge diffusion. Using the case of the opening of the Nagano-Hokuriku shinkansen, and applying the difference-in-differences approach, we estimate the impact of the high-speed rail on innovative activities along the line. We find that after the opening of the high-speed rail, innovative activities by establishments along the line significantly increased. Furthermore, collaborative patents across establishments along the line and citations of patents published by the establishments in Tokyo increased. These imply that the innovative activities along the line are increased through knowledge diffusion from nearby establishments and those in Tokyo.