Firm Growth and Localized Knowledge Externalities
AbstractA lively debate in the literature focuses on the potential for a firm to profit from a loca-tion in a knowledge intensive context. If localized knowledge spillovers are important, firms tend to locate in proximity to capitalize on the knowledge stock of each other and knowledge institutions. We apply econometric modeling techniques that enable us to model firm level survival and (subsequent) employment growth simultaneously with different types of locally endowed knowledge externalities. We define the latent contextual concept of â€˜knowledge economyâ€™ using three manifest (measurable) dimensions. Based on the knowledge economy li-terature, we not only focus on technological externalities (â€˜R&Dâ€™), but we value complementa-ry indicators like the successful introduction of new products and services to the market (â€˜in-novationâ€™) and indicators of skills of employees ('knowledge workers'). The latter contains the use of ICT, educational level of the workforce, and communicative and creative skills. We use employment data for manufacturing and business services firms stemming from a micro data-set of approximately 62.000 firms in the Netherlands in the period 2001-2006. We conclude on the size and knowledge related composition of the contextual effects, in which the innovation dimension turns out to be most robustly related to firm-level economic growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.
Volume (Year): 38 (2008)
Issue (Month): 2 ()
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
- Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer, vol. 79(2), pages 111-134.
- David B. audretsch & Erik E. Lehmann, 2005. "Mansfield's Missing Link: The Impact of Knowledge Spillovers on Firm Growth," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 207-210, 01.
- Feldman, Maryann P. & Audretsch, David B., 1999.
"Innovation in cities:: Science-based diversity, specialization and localized competition,"
European Economic Review,
Elsevier, vol. 43(2), pages 409-429, February.
- Audretsch, David B & Feldman, Maryann P, 1998. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition," CEPR Discussion Papers 1980, C.E.P.R. Discussion Papers.
- McCloskey, Donald & Klamer, Arjo, 1995. "One Quarter of GDP Is Persuasion," American Economic Review, American Economic Association, vol. 85(2), pages 191-95, May.
- Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
- Erik Stam, 2008.
"Entrepreneurship and Innovation Policy,"
Papers in Evolutionary Economic Geography (PEEG)
0807, Utrecht University, Section of Economic Geography, revised Apr 2008.
- Döring, Thomas & Schnellenbach, Jan, 2004.
"What Do We Know About Geographical Knowledge Spillovers and Regional Growth? A Survey of the Literature,"
14, Deutsche Bank Research.
- Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
- Zoltan Acs & Catherine Armington, 2004.
"Employment Growth and Entrepreneurial Activity in Cities,"
Taylor & Francis Journals, vol. 38(8), pages 911-927.
- Zoltan J. Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Papers on Entrepreneurship, Growth and Public Policy 2004-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Foss, Nicolai J, 1998. "The Competence-Based Approach: Veblenian Ideas in the Modern Theory of the Firm," Cambridge Journal of Economics, Oxford University Press, vol. 22(4), pages 479-95, July.
- Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991.
"Growth in Cities,"
NBER Working Papers
3787, National Bureau of Economic Research, Inc.
- J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992.
"Industrial Development in Cities,"
NBER Working Papers
4178, National Bureau of Economic Research, Inc.
- Mariani, Myriam, 2004. "What determines technological hits?: Geography versus firm competencies," Research Policy, Elsevier, vol. 33(10), pages 1565-1582, December.
- Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511, September.
- Combes, Pierre-Philippe & Magnac, Thierry & Robin, Jean-Marc, 2004.
"The Dynamics of Local Employment in France,"
IZA Discussion Papers
1061, Institute for the Study of Labor (IZA).
- Combes, Pierre-Philippe & Magnac, Thierry & Robin, Jean-Marc, 2003. "The Dynamics of Local Employment in France," CEPR Discussion Papers 3912, C.E.P.R. Discussion Papers.
- Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2004. "The dynamics of local employment in France," Working Papers 155391, Institut National de la Recherche Agronomique, France.
- Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2004. "The dynamics of local employment in France," Research Unit Working Papers 0402, Laboratoire d'Economie Appliquee, INRA.
- Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2003. "The Dynamics of Local Employment in France," Working Papers 2003-15, Centre de Recherche en Economie et Statistique.
- Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
- Richard E. Baldwin & Toshihiro Okubo, 2006.
"Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting,"
Journal of Economic Geography,
Oxford University Press, vol. 6(3), pages 323-346, June.
- Richard Baldwin & Toshihiro Okubo, 2005. "Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting," NBER Working Papers 11650, National Bureau of Economic Research, Inc.
- Sena, Vania, 2004. "Total factor productivity and the spillover hypothesis: Some new evidence," International Journal of Production Economics, Elsevier, vol. 92(1), pages 31-42, November.
- Teece, David J., 1993.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 22(2), pages 112-113, April.
- Teece, David J., 1986. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 15(6), pages 285-305, December.
- Jun Koo & Lall, Somik V., 2005. "Economic geography : real or hype?," Policy Research Working Paper Series 3465, The World Bank.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2007. "The geographical and institutional proximity of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 423-443, 08.
- James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
- Simon, Curtis J., 1998. "Human Capital and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 43(2), pages 223-243, March.
- Zoltan J. Acs & Bo Carlsson & Pontus Braunerhjelm & David B. Audretsch, . "The Missing Link," Papers on Entrepreneurship, Growth and Public Policy 2005-08, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Otto Raspe & Frank van Oort, 2006.
"The Knowledge Economy and Urban Economic Growth,"
Papers in Evolutionary Economic Geography (PEEG)
0607, Utrecht University, Section of Economic Geography, revised Apr 2006.
- David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(1), pages 79-107, April.
- Jun Koo, 2005. "Agglomeration and spillovers in a simultaneous framework," The Annals of Regional Science, Springer, vol. 39(1), pages 35-47, 03.
- Delmar, Frederic & Davidsson, Per & Gartner, William B., 2003. "Arriving at the high-growth firm," Journal of Business Venturing, Elsevier, vol. 18(2), pages 189-216, March.
- Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
- Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute for the Study of Labor (IZA).
- Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
- Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2014. "Firm Growth and the Spatial Impact of Geolocated External Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(2-3), pages 234-256, April.
- Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
- Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
- Tom Broekel & Antje Schimke & Thomas Brenner, 2011. "The effects of cooperative R and D subsidies and subsidized cooperation on employment growth," Working Papers on Innovation and Space 2011-04, Philipps University Marburg, Department of Geography.
- Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors â€“ Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
- Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing The Entrepreneurial Ladder in Europe and The US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
- Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
- Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
- Quatraro, Francesco & Vivarelli, Marco, 2013. "Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries," IZA Discussion Papers 7436, Institute for the Study of Labor (IZA).
- Broekel, Tom & Schimke, Antje & Brenner, Thomas, 2011. "The effects of cooperative R&D subsidies and subsidized cooperation on employment growth," Working Paper Series in Economics 34, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
- Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
- Nadine LEVRATTO & Denis CARRÉ, 2013. "La Croissance Des Établissements Industriels : Une Question De Localisation," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 93-120.
- Peter Zwan & Ingrid Verheul & A. Thurik, 2012. "The entrepreneurial ladder, gender, and regional development," Small Business Economics, Springer, vol. 39(3), pages 627-643, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.