Abstract
This paper investigates the long-term impact of the large human capital shock to local communities caused by World War I soldier losses on innovation in Britain. Using a novel dataset that links parish-level WWI mortality with patent data from 1895 to 1979, we compare innovation output in areas with high and low mortality. Difference-in-differences results reveal that higher WWI mortality led to a persistent decline in patenting, with a 10% increase in deaths reducing the likelihood of innovation by 0.8-0.11 percentage points and the likelihood of top innovations by three times as much. Effects are amplified by losing high-skill individuals, such as graduates from elite institutions or engineers, while they are mitigated by the presence of an ecosystem that encourages innovation, measured by proximity to universities or connective infrastructures. Our results highlight how human capital losses can reshape innovation landscapes for generations.
Local Organizer: Stephanie Heger