Advanced Search
MyIDEAS: Login to save this article or follow this journal

Labor pooling in R&D intensive industries

Contents:

Author Info

  • Gerlach, Heiko
  • Rønde, Thomas
  • Stahl, Konrad

Abstract

We investigate the interplay between firms' R&D decisions and local labor market competition and how this influences equilibrium location choices and welfare. Firms engage in risky R&D activities that generate stochastic product and derived labor demand. We show that firms located in a cluster tend to invest more and take more risk in R&D compared to spatially separated firms. Most interestingly, ex-ante symmetric firms choose asymmetric R&D investments when located in a cluster. This creates an additional welfare benefit from agglomeration, because firms choose a more efficient, diversified portfolio of R&D projects at the industry level.

Download Info

If 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.
File URL: http://www.sciencedirect.com/science/article/B6WMG-4TN82D8-1/2/f45eb5ee4a2e3c5d787164913395d066
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 65 (2009)
Issue (Month): 1 (January)
Pages: 99-111

as in new window
Handle: RePEc:eee:juecon:v:65:y:2009:i:1:p:99-111

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(3), pages S111-43, June.
  2. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 59, pages 185.
  3. Combes, Pierre-Philippe & Duranton, Gilles, 2001. "Labour Pooling, Labour Poaching and Spatial Clustering," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2975, C.E.P.R. Discussion Papers.
  4. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders in the Theory of Growth," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(1), pages 43-61, January.
  5. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262610868, December.
  6. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers, Tel Aviv 14-92, Tel Aviv.
  7. Sudipto Bhattacharya & Dilip Mookherjee, 1986. "Portfolio Choice in Research and Development," RAND Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 17(4), pages 594-605, Winter.
  8. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 630-40, June.
  9. Saint-Paul, Gilles, 2003. "Information Sharing and Cumulative Innovation in Business Networks," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4116, C.E.P.R. Discussion Papers.
  10. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1994. "R&D Spillovers and Recipient Firm Size," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 76(2), pages 336-40, May.
  11. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  12. Stahl, Konrad O. & Walz, Uwe, 2001. "Will there be a concentration of alikes? The impact of labor market structure on industry mix in the presence of product market shocks," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 140, Hamburg Institute of International Economics (HWWA).
  13. Dasgupta, Partha & Maskin, Eric, 1987. "The Simple Economics of Research Portfolios," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 97(387), pages 581-95, September.
  14. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier.
  15. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, Elsevier, vol. 50(2), pages 191-229, September.
  16. Audretsch, David B & Feldman, Maryann P, 1995. "Innovative Clusters and the Industry Life Cycle," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1161, C.E.P.R. Discussion Papers.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lööf, Hans & Nabavi, Pardis, 2012. "Increasing Return To Smart Cities," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 274, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 26 Sep 2012.
  2. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Other Operational Studies 18613, The World Bank.
  3. Andini, Monica & de Blasio, Guido & Duranton, Gilles & Strange, William C., 2013. "Marshallian labour market pooling: Evidence from Italy," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(6), pages 1008-1022.
  4. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and cities: evidence from the post-communist world," ERSA conference papers, European Regional Science Association ersa11p288, European Regional Science Association.
  5. Glaeser, Edward L. & Rosenthal, Stuart S. & Strange, William C., 2010. "Urban economics and entrepreneurship," Journal of Urban Economics, Elsevier, Elsevier, vol. 67(1), pages 1-14, January.
  6. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and Cities: Evidence from the Post-communist World," WIFO Working Papers, WIFO 397, WIFO.
  7. Henkel, Joachim & Rønde, Thomas & Wagner, Marcus, 2010. "And the Winner Is--Acquired: Entrepreneurship as a Contest with Acquisition as the Prize," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8147, C.E.P.R. Discussion Papers.
  8. Gerald Carlino & William R. Kerr, 2014. "Agglomeration and Innovation," Harvard Business School Working Papers, Harvard Business School 15-007, Harvard Business School.
  9. Gerlach, Heiko A. & Rønde, Thomas & Stahl, Konrad O., 2008. "Labor Pooling in R&D Intensive Industries," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 08-074, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Ajay Agrawal, 2014. "Diaspora Networks, Knowledge Flows and Brain Drain," WIPO Economic Research Working Papers, World Intellectual Property Organization - Economics and Statistics Division 15, World Intellectual Property Organization - Economics and Statistics Division.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:65:y:2009:i:1:p:99-111. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

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.