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Performance differentials within geographic clusters

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  • McCann, Brian T.
  • Folta, Timothy B.
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    Abstract

    Increasing evidence indicates that firms benefit from a location in a geographic cluster of similar firms. The literature is nearly silent, however, on whether agglomeration economies accrue symmetrically across clustered firms. Drawing from the knowledge-based view, we investigate which firms benefit most from agglomeration and discuss how the implications for entrepreneurs are significant if some firms benefit more from geographic agglomeration than others. We investigate three particular firm attributes that may accentuate or mitigate benefits tied to participation in a cluster. We test our hypotheses on a sample of biotechnology firms and find strong evidence that firms benefit asymmetrically. Younger firms and firms with higher knowledge stocks benefit more from agglomeration.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 26 (2011)
    Issue (Month): 1 (January)
    Pages: 104-123

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    Handle: RePEc:eee:jbvent:v:26:y:2011:i:1:p:104-123

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    Web page: http://www.elsevier.com/locate/jbusvent

    Related research

    Keywords: Geographic clusters Agglomeration Externalities Biotechnology;

    References

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    Citations

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    Cited by:
    1. Frank Van Oort, 2013. "Agglomeration Economics Beyond the Specialisation-Diversity Controversy," Papers in Evolutionary Economic Geography (PEEG), Utrecht University, Section of Economic Geography 1313, Utrecht University, Section of Economic Geography, revised Aug 2013.
    2. Hoenen, Sebastian & Kolympiris, Christos & Schoenmakers, Wilfred & Kalaitzandonakes, Nicholas, 2014. "The diminishing signaling value of patents between early rounds of venture capital financing," Research Policy, Elsevier, Elsevier, vol. 43(6), pages 956-989.
    3. Albahari, Alberto & Barge-Gil, Andrés & Pérez-Canto, Salvador & Modrego-Rico, Aurelia, 2013. "The Influence of Science and Technology Park Characteristics on Firms’ Innovation Results," MPRA Paper 48829, University Library of Munich, Germany.
    4. Fernhaber, Stephanie A. & Li, Dan, 2013. "International exposure through network relationships: Implications for new venture internationalization," Journal of Business Venturing, Elsevier, Elsevier, vol. 28(2), pages 316-334.
    5. Frank G. van Oort & Martijn J. Burger & Joris Knoben & Otto Raspe, 2012. "Multilevel Approaches And The Firm-Agglomeration Ambiguity In Economic Growth Studies," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 26(3), pages 468-491, 07.
    6. Diez-Vial, Isabel, 2011. "Geographical cluster and performance: The case of Iberian ham," Food Policy, Elsevier, Elsevier, vol. 36(4), pages 517-525, August.
    7. Stephan Brunow & Valentina Nafts, 2013. "What types of firms tend to be more innovative: A study on Germany," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013021, Norface Research Programme on Migration, Department of Economics, University College London.
    8. Karima Kourtit & Peter Nijkamp, 2013. "In Search of Creative Champions in High-Tech Spaces," Tinbergen Institute Discussion Papers, Tinbergen Institute 13-193/VIII, Tinbergen Institute.
    9. In Lee & Matthew Marvel, 2014. "Revisiting the entrepreneur gender–performance relationship: a firm perspective," Small Business Economics, Springer, Springer, vol. 42(4), pages 769-786, April.
    10. Jose Belso-Martinez, 2012. "To what extent temporary collocation erodes the contribution of the permanent clustering to innovation in manufacturing industries?," ERSA conference papers, European Regional Science Association ersa12p44, European Regional Science Association.
    11. Pe'er, Aviad & Keil, Thomas, 2013. "Are all startups affected similarly by clusters? Agglomeration, competition, firm heterogeneity, and survival," Journal of Business Venturing, Elsevier, Elsevier, vol. 28(3), pages 354-372.
    12. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2013. "Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster," Working Papers, Maastricht School of Management 2013/28, Maastricht School of Management.
    13. Plummer, Lawrence A. & Acs, Zoltan J., 2014. "Localized competition in the knowledge spillover theory of entrepreneurship," Journal of Business Venturing, Elsevier, Elsevier, vol. 29(1), pages 121-136.
    14. 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, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(2-3), pages 234-256, April.
    15. Frank G. van Oort & Martijn J. Burger & Joris Knoben & Otto Raspe, 2012. "Multilevel Approaches and the Firm-Agglomeration Ambiguity in Economic Growth Studies," Tinbergen Institute Discussion Papers, Tinbergen Institute 12-014/3, Tinbergen Institute.

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