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The Dynamics of Agglomeration Externalities along the Life Cycle of Industries


Author Info

  • Frank Neffke
  • Martin Henning
  • Ron Boschma
  • Karl-Johan Lundquist
  • Lars-Olof Olander


Neffke F., Henning M., Boschma R., Lundquist K.-J. and Olander L.-O. The dynamics of agglomeration externalities along the life cycle of industries, Regional Studies. This paper investigates the changing roles of agglomeration externalities along the industry life cycle. It is argued that industries have different agglomeration needs in different stages of their life cycles because their mode of competition, innovation intensity, and learning opportunities change over time. For twelve Swedish manufacturing industries, it is determined for each year between 1974 and 2004 whether the industry is in a young, intermediate, or mature stage. Whereas Marshall-Arrow-Romer (MAR) externalities steadily increase with the maturity of industries, the effects of local diversity (Jacobs' externalities) are positive for young industries, but decline and even become negative for more mature industries. [image omitted] Neffke F., Henning M., Boschma R., Lundquist K.-J. et Olander L.-O. La dynamique des effets externes d'agglomeration tout au long du cycle de vie des industries, Regional Studies. Cet article cherche a examiner l'evolution du role des effets externes d'agglomeration tout au long du cycle de vie des industries. On soutient que les atouts de l'agglomeration varient suivant la phase du cycle de vie parce que le mode de competition, l'intensite de l'innovation, et les possiblites d'apprentissage des industries evoluent dans le temps. On determine pour douze industries suedoises et pour chaque annee de 1974 a 2004 si, oui ou non, une industrie est a un niveau naissant, intermediaire ou avance. Tandis que les effets externes Marshall-Arrow-Romer (MAR) augmentent regulierement au fur et a mesure du developpement des industries, les effets de la diversite locale (effets externes Jacobs) s'averent positifs pour les industries naissantes mais diminuent, voire s'averent negatifs, pour ce qui est des industries plus avancees. Cycle de vie des industries Agglomeration Effets externes Evolution Marshall-Arrow-Romer (MAR) Jacobs Neffke F., Henning M., Boschma R., Lundquist K.-J. und Olander L.-O. Die Dynamik von Agglomerationsexternalitaten wahrend des Lebenszyklus von Branchen, Regional Studies. In diesem Beitrag untersuchen wir die wechselnden Rollen von Agglomerationsexternalitaten im Laufe des Lebenszyklus von Branchen. Wir stellen die These auf, dass die Branchen in verschiedenen Phasen ihrer Lebenszyklen verschiedene Agglomerationsbedurfnisse aufweisen, da sich die Art ihres Wettbewerbs, die Intensitat der Innovationen und die Chancen zum Lernen im Laufe der Zeit verandern. Anhand von zwolf produzierenden Branchen Schwedens wird fur jedes Jahr von 1974 bis 2004 festgestellt, ob sich die Branchen jeweils in einem jungen, mittleren oder reifen Stadium befinden. Wahrend die Marshall-Arrow-Romer-(MAR)-Externalitaten mit zunehmender Reife der Branchen gleichmassig zunehmen, fallen die Auswirkungen der lokalen Diversitat (Jacobs-Externalitaten) fur junge Branchen positiv aus, nehmen dann aber fur reifere Branchen ab und werden schliesslich sogar negativ. Lebenszyklus von Branchen Agglomeration Externalitaten Evolution Marshall-Arrow-Romer (MAR) Jacobs Neffke F., Henning M., Boschma R., Lundquist K.-J. y Olander L.-O. Las dinamicas de los efectos externos de aglomeracion en el ciclo vital de las industrias, Regional Studies. En este articulo analizamos las funciones cambiantes de los efectos externos de aglomeracion en el ciclo vital de sectores industriales. Argumentamos que las industrias tienen diferentes necesidades de aglomeracion en distintas fases de sus ciclos vitales ya que su modo de competicion, intensidad de innovacion y oportunidades de aprendizaje evolucionan con el tiempo. En doce sectores industriales manufactureros de Suecia se determino para cada ano desde 1974 a 2004 si la industria estaba en una fase joven, intermedia o madura. Mientras que los efectos externos Marshall-Arrow-Romer (MAR) aumentan de forma constante con la madurez de las industrias, los efectos de la diversidad local (las externalidades de Jacob) son positivas en las industrias jovenes, no obstante para las industrias mas maduras los efectos entran en declive e incluso se vuelven negativos. Ciclo vital de las industrias Aglomeracion Efectos externos Evolucion Marshall-Arrow-Romer (MAR) Jacobs

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Bibliographic Info

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

Volume (Year): 45 (2011)
Issue (Month): 1 ()
Pages: 49-65

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Handle: RePEc:taf:regstd:v:45:y:2011:i:1:p:49-65

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Keywords: Industry life cycle; Agglomeration; Externalities; Evolution; Marshall-Arrow-Romer (MAR); Jacobs;


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Cited by:
  1. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Section of Economic Geography, revised Dec 2013.
  2. Jürgen Essletzbichler, 2013. "Relatedness, industrial branching and technological cohesion in U.S. metropolitan areas," Papers in Evolutionary Economic Geography (PEEG) 1307, Utrecht University, Section of Economic Geography, revised May 2013.
  3. Argentino Pessoa, 2012. "Regional cluster policy: key features and critical issues," ERSA conference papers ersa12p250, European Regional Science Association.
  4. R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. Pierre-Alexandre Balland & Mathijs de Vaan & Ron Boschma, 2011. "The Dynamics of Interfirm Networks along the Industry Life Cycle: The Case of the Global Video Games Industry 1987-2007," Papers in Evolutionary Economic Geography (PEEG) 1114, Utrecht University, Section of Economic Geography, revised Aug 2011.
  6. Ron Boschma, 2014. "Towards an evolutionary perspective on regional resilience," Papers in Evolutionary Economic Geography (PEEG) 1409, Utrecht University, Section of Economic Geography, revised Mar 2014.
  7. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2013. "Labour market externalities and regional growth in Sweden: The importance of labour mobility between skill-related industries," Papers in Evolutionary Economic Geography (PEEG) 1318, Utrecht University, Section of Economic Geography, revised Oct 2013.
  8. Karl-Johan Lundquist & Lars-Olof Olander, 2010. "Growth cycles: transformation and regional development," SRE-Disc sre-disc-2010_04, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.
  9. Karl-Johan Lundquist & Lars-Olof Olander, 2011. "Growth Cycles -Transformation and regional development," ERSA conference papers ersa10p918, European Regional Science Association.
  10. Stefano Elia & Lucia Piscitello & Sergio Mariotti, 2013. "Industrial Districts, Core Cities And Ownership Strategy Of Multinational Firms Investing In Italy," ERSA conference papers ersa13p27, European Regional Science Association.
  11. Matthias Duschl & Tobias Scholl & Thomas Brenner & Dennis Luxen & Falk Raschke, 2012. "Industry-specific firm growth and aggolmeration," Working Papers on Innovation and Space 2012-06, Philipps University Marburg, Department of Geography.
  12. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2010. "Production and financial linkages in inter-firm networks: structural variety, risk-sharing and resilience," Department of Economics Working Papers 1017, Department of Economics, University of Trento, Italia.
  13. Mossig, Ivo & Smets, Florian & Scheibner, Matthias, 2013. "Struktur- und Entwicklungsanalyse der Arbeitsmarktregionen in Deutschland: 2001 - 2009," Beiträge zur Wirtschaftsgeographie und Regionalentwicklung 1-2013, Universität Bremen, Institut für Geographie.
  14. Pessoa, Argentino, 2012. "Regional cluster policy: The Asian model vs. the OECD approach," MPRA Paper 42024, University Library of Munich, Germany.
  15. E. Marrocu & R. Paci & S. Usai, 2010. "Productivity growth in the Old and New Europe: the role of agglomeration externalities," Working Paper CRENoS 201024, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  16. Stanko, Michael A. & Olleros, Xavier, 2013. "Industry growth and the knowledge spillover regime: Does outsourcing harm innovativeness but help profit?," Journal of Business Research, Elsevier, vol. 66(10), pages 2007-2016.
  17. Giulio Cainelli & Eleonora Di Maria & Roberto Ganau, 2011. "Agglomeration, related-variety and internationalisation. Does a relationship exist?," Openloc Working Papers 1114, Public policies and local development.
  18. Fredin, Sabrina, 2012. "The Dynamics and Evolution of Local Industries – The case of Linköping," CIRCLE Electronic Working Papers 2012/7, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.


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