Close, but not the same: Locally headquartered organizations and agglomeration economies in a declining industry
AbstractDeparting from research on expanding, high-technology industries, we study the impact of agglomeration in a declining, low-technology industry. The setting is U.S. footwear manufacturing between 1975 and 1991, when import competition rendered local support critical for survival. We examine how agglomeration-related survival benefits depended upon the presence of locally headquartered manufacturing plants and whether such benefits came at the expense of other local industries. Consistent with ecological arguments, plant failure rates were higher in agglomerations but this effect was attenuated and, in some cases, reversed in agglomerations with more locally headquartered plants. Moreover, only locally headquartered plants experienced such benefits; remotely headquartered plants failed at higher rates in agglomerations. Although more footwear manufacturing jobs were retained in agglomerations with many locally headquartered plants, such locales also exhibited lower manufacturing job growth in other industries. These findings lend greater generalizability to agglomeration theories and also imply trade-offs at the community level.
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.
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 InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 39 (2010)
Issue (Month): 3 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/respol
Agglomeration Industrial cluster Location advantage Organizations Manufacturing;
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.:
- Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
- Stuart S. Rosenthal & William C. Strange, 2003.
"Geography, Industrial Organization, and Agglomeration,"
The Review of Economics and Statistics,
MIT Press, vol. 85(2), pages 377-393, May.
- Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 14, Center for Policy Research, Maxwell School, Syracuse University.
- Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University.
- Julio J. Rotemberg & Garth Saloner, 1990.
"Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade,"
NBER Working Papers
3228, National Bureau of Economic Research, Inc.
- Rotemberg, Julio J. & Saloner, Garth, 2000. "Competition and human capital accumulation: a theory of interregional specialization and trade," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 373-404, July.
- Holger Görg & Frances Ruane, 2000. "An Analysis of Backward Linkages in the Irish Electronics Sector," The Economic and Social Review, Economic and Social Studies, vol. 31(3), pages 215-235.
- Michael S. Dahl & Olav Sorenson, 2010.
"The Migration of Technical Workers,"
in: Cities and Entrepreneurship
National Bureau of Economic Research, Inc.
- Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992.
"Growth in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1126-52, December.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
- 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.
- Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
- Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
- Catherine Beaudry & Stefano Breschi, 2003. "Are firms in clusters really more innovative?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 325-342.
- Kelley, Maryellen R. & Harrison, Bennett, 1990. "The subcontracting behavior of single vs. multiplant enterprises in US manufacturing: Implications for economic development," World Development, Elsevier, vol. 18(9), pages 1273-1294, September.
- Aharonson, Barak S. & Baum, Joel A.C. & Plunket, Anne, 2008. "Inventive and uninventive clusters: The case of Canadian biotechnology," Research Policy, Elsevier, vol. 37(6-7), pages 1108-1131, July.
- Anil R. Doshi & Glen W.S. Dowell & Michael W. Toffel, 2011. "How Firms Respond to Mandatory Information Disclosure," Harvard Business School Working Papers 12-001, Harvard Business School, revised Jun 2012.
- Gilbert, Brett Anitra, 2012. "Creative destruction: Identifying its geographic origins," Research Policy, Elsevier, vol. 41(4), pages 734-742.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
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.