Occupational agglomeration and R&D worker mobility: career opportunities and wage premiums

Abstract This article examines regional variation in the mobility patterns of R&D workers, focusing on how industry and occupational agglomerations shape interregional job changes. Using linked employer–employee data from Sweden, the empirical analysis shows that while both forms of agglomeration affect mobility decisions, occupational agglomerations have a stronger impact. Workers in regions with a high concentration of occupations that demand similar skill are less likely to move across regions, not only due to better career opportunities but also because of associated wage premiums. As a result, regions functionally specialized in R&D are better able to retain talent, reinforcing their cumulative advantage in innovation. These findings contribute to the literature on agglomeration and wage premium and highlight the need for local capacity building in realizing the benefits of R&D investments.