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Social networks and industrial geography

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Author Info
Olav Sorenson ()
Abstract

In many industries, production resides in a small number of highly concentrated regions; for example, several high tech industries cluster in Silicon Valley. Explanations for this phenomenon have focused on how the co-location of firms in an industry might increase the efficiency of production. In contrast, this article argues that industries cluster because entrepreneurs find it difficult to access the information and resources they require when they reside far from the sources of these valuable inputs. Since existing firms often represent the largest pools of these important factors, the current geographic distribution of production places important constraints on entrepreneurial activity. As a result, new foundings tend to arise in the same areas as existing ones, and hence reproduce the industrial geography. In support of this thesis, the article reviews empirical evidence from the shoe manufacturing and biotechnology industries. Copyright Springer-Verlag Berlin/Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s00191-003-0165-9
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Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 13 (2003)
Issue (Month): 5 (December)
Pages: 513-527
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Handle: RePEc:spr:joevec:v:13:y:2003:i:5:p:513-527

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Related research
Keywords: Social networks; Entrepreneurship; Agglomeration; Spin-offs;

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  1. Alfonso Gambardella & Marco Giarratana, 2004. "Chandlerian Firms vs. Entrepreneurship," LEM Papers Series 2004/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  2. Rik Wenting & Oedzge Atzema & Koen Frenken, 2008. "Urban Amenities or Agglomeration Economies? Locational Behaviour and Entrepreneurial Success of Dutch Fashion Designers," Papers in Evolutionary Economic Geography (PEEG) 0803, Utrecht University, Section of Economic Geography, revised Jan 2008. [Downloadable!]
  3. Harald Strotmann & Andreas Koch, 2005. "The Impact of Functional Integration and Spatial Proximity on the Post-entry Performance of Knowledge Intensive Business Service Firms," IAW Discussion Papers 18, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
  4. G. Buenstorf & D. Fornahl, 2006. "B2C - Bubble to Cluster: The Dot.com Boom, Spin-off Entrepreneurship, and Regional Industry Evolution," Papers on Economics and Evolution 2006-20, Max Planck Institute of Economics, Evolutionary Economics Group.
  5. Bahlmann, M.D. & Huysman, M.H. & Elfring, T., 2009. "Global pipelines or global buzz? : a micro-level approach towards the knowledge-based view of clusters," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  6. Andreas Koch & Thomas Stahlecker, 2004. "Firm Foundations in the Knowledge Intensive Business Service Sector. Results from a Comparative Empirical Study in Three German Regions," IAW Discussion Papers 17, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
  7. Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 299-315, June. [Downloadable!] (restricted)
    Other versions:
  8. Keld Laursen & Francesca Masciarelli, 2007. "The effect of regional social capital and external knowledge acquisition on process and product innovation," ROCK Working Papers 043, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008. [Downloadable!]
  9. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  10. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2005. "Entrepreneurial Founder Effects in the Growth of Regional Clusters How Early Success is a Key Determinant," DRUID Working Papers 05-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  11. Bahlmann, R.D. & Huysman, M.H. & Elfring, T. & Groenewegen, P., 2008. "Clusters as vehicles for entrepreneurial innovation and new idea generation : a critical assessment," Serie Research Memoranda 0013, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  12. Guido Buenstorf & Dirk Fornahl, 2009. "B2C—bubble to cluster: the dot-com boom, spin-off entrepreneurship, and regional agglomeration," Journal of Evolutionary Economics, Springer, vol. 19(3), pages 349-378, June. [Downloadable!] (restricted)
  13. E. Stam & E. Garnsey, 2005. "New Firms Evolving in the Knowledge Economy; problems and solutions around turning points," Papers on Economics and Evolution 2005-05, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  14. Uwe Cantner & Maximilian Goethner & Andreas Meder, 2007. "Prior knowledge and entrepreneurial innovative success," Jena Economic Research Papers in Economics 2007-052, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics. [Downloadable!]
  15. Lawrence A. Plummer, 2007. "The Spatial Dynamic Between Established Firms and Entrants," The Office of Advocacy Small Business Working Papers 07lp, U.S. Small Business Administration, Office of Advocacy. [Downloadable!]
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