« Back to Results

Innovation and the Diffusion of Ideas

Paper Session

Saturday, Jan. 3, 2026 8:00 AM - 10:00 AM (EST)

Philadelphia Marriott Downtown
Hosted By: Cliometric Society
  • Chair: Taylor Jaworski, University of Colorado

Divided Into Progress! How Europe’s Political and Religious Fragmentation Spurred Creativity: 1100-1900

Matias Cabello
,
Martin Luther University Halle-Wittenberg

Abstract

It has long been argued that Europe's fragmentation of authority fostered competition for talent and limited the suppression of ideas, thereby enabling artistic, scientific, and economic development. To test this hypothesis, the paper introduces a city-level panel of creativity measures together with measures of political and religious fragmentation from 1100 to 1900. Rooted in medieval history, both kinds of fragmentation are shown to be interconnected and indeed strong predictors of creativity. What mechanisms led to their strong predictive power? Except for the 16th and 17th centuries, when the fragmentation of authority became key in limiting the repression of subversive ideas, the dominant driver was the pluricentral demand for genius across competing authorities. Crucially, these authorities founded competing educational and artistic institutions that outlived fragmentation itself, thereby significantly stimulating creativity also in the very long term

Flora, Cosmos, Salvatio: Pre-modern Academic Institutions and the Spread of Ideas

Chiara Zanardello
,
IAST-Toulouse School of Economics
David de la Croix
,
UCLouvain
Rossana Scebba
,
UCLouvain

Abstract

While good ideas can emerge anywhere, it takes a community to develop and disseminate them. In premodern Europe (1084-1793), there were approximately 200 universities and 150 academies of sciences, which were home to thousands of scholars and created an extensive network of intellectual exchange. By reconstructing interpersonal connections that were made via institutional affiliations, we demonstrate how the European academic landscape facilitated the diffusion of ideas and led cities to develop: examples include botanic gardens, astronomical observatories, and Protestantism. Counterfactual simulations reveal that both universities and academies played crucial roles, with academies being particularly effective at connecting distant parts of the network. Moreover, we show that the diffusion of ideas through the network is remarkably resilient, even if we remove key regions such as France or the British Isles. In Europe, ideas gain prominence when they are channeled effectively by powerful institutions.

Migration, the Diffusion of Ideas and the Rise of the American Labor Movement: Evidence from the American Civil War

Pablo Zarate
,
University of Mannheim, ZEW

Abstract

I study the effects of the migration of particular German revolutionaries, the Fourty-Eighters, on the start of the Labor Movement in 19th Century US. I start by relying on OLS with a rich set of controls. I find a positive association between counties that received revolutionaries and the number of Knights of Labor Unions established. This relationship is robust to the exclusion of big cities, different definitions of Fourty-Eighter counties, and analyzing only small counties. Moving towards causality, I leverage the increasingly random assignment of soldiers to Union Army companies to test for the horizontal diffusion of ideology. Using soldier-level data, I construct a measure of exposure to 48er counties through having shared Civil War enlistment-a unique setting where men from diverse counties lived together for years. I find a robust effect of 48er exposure on subsequent unionization, with strong effects concentrated among counties with the highest exposure levels. This paper provides evidence for horizontal diffusion of socialist ideas across the Atlantic and highlights how the American Civil War created unprecedented ideological exchange, contributing to the development of the American labor movement.

The Impact of the Nobel Prize on the Level and Direction of Innovation

Bang Nguyen
,
University of Bayreuth

Abstract

This paper examines how the Nobel Prize affects the level and direction of innovation, using a unique dataset of 466 Nobel laureates and 1,676 nominees in Physics, Chemistry, and Medicine during the 20th century. Leveraging the 50-year confidentiality rule on nominations, I compare innovation in winners' fields to those of nominees using a staggered difference-in-differences framework. I find a significant increase in patenting for up to 6 years in Physics and Chemistry, and up to 10 years in Medicine, after the award in the patent subclasses of Nobel laureates. Innovation then shifts to adjacent fields. This surge in patenting is mirrored by a rise in aligned publications whose titles and abstracts contain the same bigrams and trigrams as the winning papers. These findings suggest that the Nobel Prize boosts short-term innovation in the winning topics and fosters broader exploration over time
JEL Classifications
  • N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
  • O1 - Economic Development