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Geographical Concentration, Entrepreneurship and Regional Growth: Evidence from Regional Data in Sweden, 1975-99

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Author Info

  • Pontus Braunerhjelm
  • Benny Borgman

Abstract

Braunerhjelm P. and Borgman B. (2004) Geographical concentration, entrepreneurship and regional growth: evidence from regional data in Sweden, 1975-99, Regional Studies38, 929-947. This paper implements Swedish data cross-tabulated on 143 industries (four-digit level) and 70 labour market regions for 1975-99 to examine empirically the degree of concentration in the production of goods and services, the relationship between concentration and regional growth, and the role of regional entrepreneurship. To our knowledge, these issues have not been analysed previously at this level of aggregation. Ellison-Glaeser indexes and Gini location quotients reveal a geographical concentration in Swedish industry that is stronger than in the USA. The econometric results imply a 2-6% higher growth in regionally concentrated industries. The effect is more pronounced for knowledge-intensive manufacturing, network industries and industries intensively using raw material. It is also found that regional entrepreneurship and regional absorption capacity are important explanations of regional growth, whereas the impact of the skill-level and economies of scale is more mixed. Braunerhjelm P. et Borgman B. (2004) La concentration geographique, l'esprit d'entreprise et la croissance regionale: des preuves provenant des donnees regionales pour la Suede, de 1975 a 1999, Regional Studies38, 929-947. Cet article cherche a employer des donnees suedoises allant de 1975 a 1999 et croisees pour 143 industries (au niveau a quatre chiffres) et pour 70 regions delimitees en fonction des marches du travail, afin d'examiner de facon empirique l'importance de la concentration de la production des biens et des services, le rapport entre les notions de concentration et de croissance regionale, et le role de l'esprit d'entreprise regional. On dirait que ces questions n'ont pas ete analysees a un tel niveau. Des indices Ellison-Glaeser ainsi que des coefficients Gini laissent voir une concentraion geographique de l'industrie suedoise plus forte qu'aux Etats-Unis. Les resultats empiriques laissent supposer une croissance des industries concentrees sur le plan regional qui est superieure de 2 a 6%. L'effet s'avere plus marque pour l'industrie a intensite de connaissance, pour les industries de reseau et pour les industries a forte consommation de matieres premieres. Il s'avere aussi que l'esprit d'entreprise regional et la capacite d'absorption regionale sont d'importantes explications de la croissance regionale, alors que l'impact du niveau de competence et des economies d'echelle s'avere plus mitige. Braunerhjelm P. und Borgman B. (2004) Geographische Ballung, Unternehmertum und regionales Wachstum: Beweismaterial von schwedischen Regionaldaten im Zeitraum 1975-99, Regional Studies38, 929-947. In diesem Aufsatz werden schwedische, fur 143 Industrien (vierstellige Hohe) kreuz-tabellierte Daten und 70 Arbeitsregionen fur den Zeitraum 1975-99 dazu benutzt, das Ausmass der Konzentration bei Guterherstellung und Dienstleistungen, die Beziehung zwischen Konzentration und regionalem Wachstum, und die Rolle regionalen Unternehmertums empirisch zu untersuchen. Soviel bekannt, sind derartige Fragen auf dieser Stufe der Haufung bisher noch nicht analysiert worden. Ellison-Glaeser Verzeichnisse und Gim Standortquotienten lassen eine geographische Konzentration in der schwedisichen Industrie erkennen, die diejenige der USA noch ubertrifft. Die okonomischen Ergebisse lassen auf ein 2 bis 6 Prozent hoheres Wachstum in regional konzentrierten Industrien schliessen. Bei Fachkenntnisse intensiver einsetzender Herstellung, vernetzten Industrien und intensiv Rohmaterial verarbeiteden Industrien ist die Auswirkung ausgepragter. Es wurde auch festgestellt, dass regionales Unternehmertum und regionale Aufnahmefahigkeit wichtige Erklarungen regionalen Wachstums darstellen, wahrend die Auswirkung fachmannischen Konnens und Einsparungen durch erhohte Produktion unterschiedlicher ausfallt. Braunerhjelm P. y Borgman B. (2004) Concentracion geografica, empresarialidad y crecimiento regional: evidencia obtenida de datos regionales de Suecia para el periodo 1975-99, Regional Studies38, 929-947. En este articulo utilizamos datos de suecia correspondientes ai periodo comprendido entre 1975 y 1999 y realizamos un analisis cruzado para 143 industrias (a nivel de cuatro digitos) y para 70 regiones de mercado laboral con el finde examinar empiricamente el grado de concentracion de la produccion de mercancias y de servicios, la relacion entre concentracion y crecimiento regional, y el rol de la empresarialidad regional. A nuestro entendimiento estas cuestiones no han sido previamente analizadas a tal nivel de agregacion. Los indices de Ellison-Glaeser y los cocientes de locacion de Gini revelan una concentracion geografica en la industria sueca mas acentuada que en los Estados Unidos. Los resultados econometricos insinuan un 2-6 por ciento de mayor crecimiento en las industrias regionalmente concentradas. El efecto es mas pronunciado en la manufactura que requiere un uso intensivo de conocimiento, industrias de red, y en industrias que utilizan materias primas de forma intensiva. Tambien descubrimos que la empresarialidad regional y la capacidad regional de absorcion son explicaciones importantes del crecimiento regional, mientras que el impacto del nivel de capacitacion y de las economias de escala es mas mixto.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 38 (2004)
Issue (Month): 8 ()
Pages: 929-947

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Handle: RePEc:taf:regstd:v:38:y:2004:i:8:p:929-947

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Related research

Keywords: Regional growth; Geographic concentration; Entrepreneurship; Skills;

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Cited by:
  1. Colin Davis & Ken-ichi Hashimoto, 2014. "Industry Concentration, Knowledge Diffusion, and Economic Growth Without Scale Effects," Discussion Papers 1408, Graduate School of Economics, Kobe University.
  2. NYSTRÖM, Kristina, 2009. "The Importance Of Industry Structure In The Analysis Of Regional Entry And Exit: The Case Of Sweden," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(2).
  3. Martin Andersson & Florian Noseleit, 2011. "Start-ups and employment dynamics within and across sectors," Small Business Economics, Springer, vol. 36(4), pages 461-483, May.
  4. Stilianos Alexiadis & Konstantinos Eleftheriou & Peter Nijkamp, 2013. "Regional Inequality and Human Capital Quality: The Impact of Technology on the Arrival Rate of Employment Offers," Tinbergen Institute Discussion Papers 13-166/VIII, Tinbergen Institute, revised 31 Oct 2013.
  5. Bird, Miriam & Wennberg, Karl, 2013. "Regional Influences on the Prevalence of Family Versus Non-Family Start-Ups," Ratio Working Papers 212, The Ratio Institute.
  6. Jenifer Ruiz-Valenzuela & Rosina Moreno-Serrano & Esther Vaya-Valcarce, 2006. "Concentration of the Economic Activity: Comparing Methodologies and Geographic Units," ERSA conference papers ersa06p197, European Regional Science Association.
  7. Andersson, Martin & Lööf, Hans, 2009. "Agglomeration and Productivity - evidence from firm-level data," Working Paper Series in Economics and Institutions of Innovation 170, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  8. Martin-Barroso, David & Nuñez Serrano, Juan Andres & Velazquez, Francisco J., 2010. "A different look at aglomeration effects in Spain," MPRA Paper 33601, University Library of Munich, Germany, revised 2010.
  9. Georgios Fotopoulos, 2012. "Nonlinearities in regional economic growth and convergence: the role of entrepreneurship in the European union regions," The Annals of Regional Science, Springer, vol. 48(3), pages 719-741, June.
  10. Colin Davis & Ken-ichi Hashimoto, 2011. "Patterns of Technology, Industry Concentration, and Productivity Growth Without Scale Effects," Discussion Papers 1106, Graduate School of Economics, Kobe University.
  11. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth - past experience, current knowledge and policy implications," Working Paper Series in Economics and Institutions of Innovation 224, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  12. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.
  13. O'Connor, Allan, 2013. "A conceptual framework for entrepreneurship education policy: Meeting government and economic purposes," Journal of Business Venturing, Elsevier, vol. 28(4), pages 546-563.
  14. Sierdjan Koster, 2011. "Individual foundings and organizational foundings: their effect on employment growth in The Netherlands," Small Business Economics, Springer, vol. 36(4), pages 485-501, May.
  15. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.

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