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Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany

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  • Werner Bonte

Abstract

This article investigates the impact of various agglomeration forces on employment and innovation for a sample of aeronautical cluster firms in Northern Germany and a control group of geographically dispersed aeronautical firms in other German regions. The findings suggest that employment growth is positively affected by labor market pooling but this effect is not cluster-specific. The firms' probability of innovating is positively influenced by knowledge flows from proximate scientific institutions and public information sources as well as demanding local customers. However, only the effect of demanding customers is cluster-specific.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 11 (2004)
Issue (Month): 3 ()
Pages: 259-278

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Handle: RePEc:taf:ijecbs:v:11:y:2004:i:3:p:259-278

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Related research

Keywords: Industrial Clusters; Innovation; Firm Performance; Aerospace; JEL Classifications: L62; O30; R12;

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References

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  1. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers, Tel Aviv 14-92, Tel Aviv.
  2. Oerlemans, Leon A.G. & Meeus, Marius T.H., 2002. "Spatial embeddedness and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance," ERSA conference papers ersa02p054, European Regional Science Association.
  3. Catherine Beaudry, 2001. "Entry, Growth and Patenting in Industrial Clusters: A Study of the Aerospace Industry in the UK," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 8(3), pages 405-436.
  4. Swann, Peter & Prevezer, Martha, 1996. "A comparison of the dynamics of industrial clustering in computing and biotechnology," Research Policy, Elsevier, vol. 25(7), pages 1139-1157, October.
  5. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521171960, 9.
  6. Zvi Griliches, 1990. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
  7. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
  8. repec:fth:harver:1473 is not listed on IDEAS
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Cited by:
  1. Richard Harris, 2008. "Models of Regional Growth: Past, Present and Future," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0002, Spatial Economics Research Centre, LSE.
  2. Doran, Justin & Jordan, Declan, 2012. "Cross Sectoral Differences in Drivers of Innovation," MPRA Paper 44470, University Library of Munich, Germany.
  3. Mercedes Delgado & Michael E. Porter & Scott Stern, 2012. "Clusters, Convergence, and Economic Performance," NBER Working Papers 18250, National Bureau of Economic Research, Inc.
  4. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
  5. David Smith & Gamal Ibrahim, 2006. "Cluster Dynamics: Corporate Strategy, Industry Evolution and Technology Trajectories -- A Case Study of the East Midlands Aerospace Cluster," Local Economy, Taylor and Francis Journals, vol. 21(4), pages 362-377, November.
  6. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
  7. Thomas Brenner & Andreas Gildner, 2006. "Long-term Implications of Local Industrial Clusters," Papers on Economics and Evolution 2006-08, Philipps University Marburg, Department of Geography.

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