Two Centuries of U.S. Innovation: Firms’ Internal Networks and Resilience to Disasters

Abstract. Using advanced machine learning methods, we construct a comprehensive database of the universe of approximately 12 million U.S. patents from 1836 to 2023. We analyze the resilience of innovation to disaster shocks using hurricane landfall data spanning two centuries. Major hurricanes destroy local innovative capacity for up to a decade and lead to permanent losses relative to the counterfactual. Multi-location firms reallocate resources from establishments in the landfall region and increase innovation in establishments elsewhere in the aftermath of a hurricane. These positive spillovers along firms’ internal networks increase aggregate innovation in counties distant from the hurricane.

Recommended citation: Kruttli, Mathias S. and Stoffman, Noah and Watugala, Sumudu W., Two Centuries of U.S. Innovation: Firms' Internal Networks and Resilience to Disasters (December 26, 2025).
Download Paper