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Who’s got the aces up his sleeve? Functional specialization of cities and entrepreneurship

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  • David Audretsch

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  • Oliver Falck

    ()

  • Stephan Heblich

    ()

Abstract

This paper combines the empirical finding of a functional specialization of cities with regional dynamics.We distinguish between cities dominated by headquarters and service firms (urban agglomerations), those with large stand-alone production plants in one sector (industrial agglomerations), and cities with integrated smaller firms (industrial districts). Based on German data, we find differing dynamics across these three city types. Cities that host basic research or integrated incumbents are more conducive to entrepreneurial activity,whereas the opposite is true of industrial agglomerations. Urban agglomerations dominated by headquarters with only administrative functions and the service sector are not very entrepreneur-friendly, either. However, although this type of city provides few externalities for startups in manufacturing, they could very well provide opportunities for service sector startups.

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Bibliographic Info

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

Volume (Year): 46 (2011)
Issue (Month): 3 (June)
Pages: 621-636

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Handle: RePEc:spr:anresc:v:46:y:2011:i:3:p:621-636

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Keywords: O18; R11; R12;

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References

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Citations

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Cited by:
  1. Stefan Kipar, 2012. "Determinants of Firm Innovation - Evidence from German Panel Data," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 45, 8.
  2. Falck, Oliver & Heblich, Stephan & Kipar, Stefan, 2011. "Incumbent innovation and domestic entry," Munich Reprints in Economics 20566, University of Munich, Department of Economics.
  3. G. F. Gori, 2013. "Urban Functional Specialisation and the Interplay between Firm’s Communication Costs," Working Papers wp877, Dipartimento Scienze Economiche, Universita' di Bologna.
  4. 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.

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