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Entrepreneurship and spatial externalities: Theory and measurement

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  • Roberta Capello

    ()
    (Departement of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci 32, 20133 Milano, Italy)

Abstract

The paper presents an empirical analysis on the role played by urbanisation and localisation economies on factor productivity of firms. A vast literature exists on this issue, conceptually presenting reasons supporting either industry size or city size as sources of external advantages. In general, the empirical analyses are based on the estimates of aggregate city or industry production functions; the limited hypotheses characterising these studies have suggested to test another methodology, based on the estimate of a production function at the firm level, and calculate how factor productivity changes according to different degrees of urbanisation and localisation economies. The methodology is applied to firms chosen in the high-tech sector, which demonstrates a high spatial concentration in particular areas of the Metropolitan Area of Milan. The result is that factor productivity is influenced by both urbanisation and localisation economies, but the latter show an increasing positive effect on factor productivity. Moreover, the size of firms plays an important role in defining the impact of urbanisation and localisation economies on firms' outcome.

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 36 (2002)
Issue (Month): 3 ()
Pages: 387-402

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Handle: RePEc:spr:anresc:v:36:y:2002:i:3:p:387-402

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Cited by:
  1. David B. Audretsch & Dirk Christian Dohse & Annekatrin Niebuhr, 2014. "Regional Unemployment Structure and New Firm Formation," Kiel Working Papers 1924, Kiel Institute for the World Economy.
  2. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2013. "High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to The Netherlands," Tinbergen Institute Discussion Papers 13-194/VIII, Tinbergen Institute.
  3. Johan P Larsson, 2012. "Disaggregating Density A Knowledge Spillover Analysis Using Geo-Coded Data," ERSA conference papers ersa12p930, European Regional Science Association.
  4. Pedro Moyano & Beatriz Fariña & Guillermo Aleixandre & Olga Ogando, 2005. "Enterprise creation at a local scale - determining factors in the case of municipalities in Castilla y León," ERSA conference papers ersa05p516, European Regional Science Association.
  5. Larsson, Johan P., 2013. "The Neighborhood or the Region? Untangling the density-productivity relationship using geocoded data," Working Paper Series in Economics and Institutions of Innovation 318, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  6. Johansson, Börje, 2004. "Parsing the Menagerie of Agglomeration and Network Externalities," Working Paper Series in Economics and Institutions of Innovation 2, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  7. Reckendrees, Alfred, 2014. "Dynamics of Overlapping Clusters: Industrial and Institutional Revolution in the Industrial District of Aachen, 1800‐1860," MPRA Paper 55523, University Library of Munich, Germany.
  8. Rui Baptista & Joana Mendonça, 2010. "Proximity to knowledge sources and the location of knowledge-based start-ups," The Annals of Regional Science, Springer, vol. 45(1), pages 5-29, August.
  9. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2012. "High performers in complex spatial systems: a self-organizing mapping approach with reference to The Netherlands," The Annals of Regional Science, Springer, vol. 48(2), pages 501-527, April.
  10. Richard Harris & John Moffat, 2011. "Plant-level Determinants of Total Factor Productivity in Great Britain, 1997-2006," SERC Discussion Papers 0064, Spatial Economics Research Centre, LSE.
  11. Borje Johansson & Hans Loof, 2008. "Innovation Activities Explained By Firm Attributes And Location," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 533-552.
  12. Kirsi Mukkala, 2003. "Agglomeration economies in the Finnish manufacturing sector," ERSA conference papers ersa03p361, European Regional Science Association.
  13. Johansson, Börje & Forslund, Ulla, 2006. "The Analysis Of Location, Co-Location And Urbanisation Economies," Working Paper Series in Economics and Institutions of Innovation 67, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  14. David Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2010. "Cultural diversity and entrepreneurship: a regional analysis for Germany," The Annals of Regional Science, Springer, vol. 45(1), pages 55-85, August.
  15. Cook, Gary A.S. & Pandit, Naresh R. & Lööf, Hans & Johansson, Börje, 2012. "Geographic clustering and outward foreign direct investment," International Business Review, Elsevier, vol. 21(6), pages 1112-1121.
  16. Gary Cook & Naresh Pandit & Hans Loof & Bˆrje Johansson, 2011. "The Influence of Clustering on MNE Location and Innovation in Great Britain," ERSA conference papers ersa10p1489, European Regional Science Association.
  17. Baptista, Rui & Lima, Francisco & Mendonça, Joana, 2011. "Establishment of higher education institutions and new firm entry," Research Policy, Elsevier, vol. 40(5), pages 751-760, June.
  18. Nijkamp, Peter, 2009. "Entrepreneurship, Development, and the Spatial Context Retrospect and Prospect," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  19. Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association.

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