The Digital Press

New research shows that economic booms, rather than busts, drive innovation, especially in mid-sized American cities, challenging the belief that hardship spurs invention. The study analyzed 2.5 million patents over 40 years and found smaller urban areas convert economic growth into patents more effectively than major metros.

Why it matters: Mid-sized cities demonstrate stronger innovation responses to economic booms, suggesting R&D funding should be geographically diversified beyond tech hubs.

The big picture: Prosperity boosts innovation output and productivity, with patenting rising during economic upswings and declining symmetrically during downturns.

Stunning stat: Just 5% of U.S. communities produce 75% of all patents, highlighting vast untapped innovation potential in smaller cities.

Commenters say: Many question patents as a measure of innovation, debate urban density’s role, and discuss how patent law and city size affect inventive activity.