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Entry by Spinoff in a High-tech Cluster

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Author Info

  • Michael S. Dahl
  • Christian Ø.R. Pedersen
  • Bent Dalum

Abstract

Recently empirical studies have focused on how capabilities of new entering firms are important for the evolution of industries over time. The performance of new entrants appears to be significantly influenced by their pre-entry background. The general impression of the literature is that firms founded by former employees of successful incumbents have shown larger propensities to survive than other categories of new entrants. In the present paper, we use this approach to study the emergence and growth over the past three decades of a wireless telecommunications cluster around Aalborg in North Jutland, Denmark (NorCOM). The aim is to analyse the dominating forces behind the growth of NorCOM using detailed information about the founding events and organizational background of the individual entrants in the cluster. We show that the technological successes of firms in the region have powered a spinoff process, which can account for the majority of the growth in number of firms and employment in the cluster.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 03-11.

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Date of creation: 2003
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Handle: RePEc:aal:abbswp:03-11

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Web page: http://www.druid.dk/

Related research

Keywords: Clusters; Spinoffs; Evolution of Industries; Entrepreneurs;

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References

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  1. Olav Sorenson, 2003. "Social networks and industrial geography," Journal of Evolutionary Economics, Springer, vol. 13(5), pages 513-527, December.
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  9. Bent Dalum & Christian Ø.R. Pedersen & Gert Villumsen, 2002. "Technoligical Life Cycles Regional Clusters Facing Disruption," DRUID Working Papers 02-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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  11. Steven Klepper & Kenneth L. Simons, 2000. "The Making of an Oligopoly: Firm Survival and Technological Change in the Evolution of the U.S. Tire Industry," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 728-760, August.
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Citations

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Cited by:
  1. Eriksson, Tor & Moritz Kuhn, Johan, 2006. "Firm spin-offs in Denmark 1981-2000 -- patterns of entry and exit," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 1021-1040, September.
  2. Mueller, Pamela, 2005. "Exploring the knowledge filter: how entrepreneurship and university-industry relations drive economic growth," Freiberg Working Papers 2005,17, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  3. Guido Buenstorf & Dirk Fornahl, 2006. "B2C - Bubble to Cluster: The Dot.com Boom, Spin-off Entrepreneurship, and Regional Industry Evolution," Papers on Economics and Evolution 2006-20, Philipps University Marburg, Department of Geography.
  4. 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.
  5. Matthias Brachert & Christoph Hornych, 2011. "Entrepreneurial Opportunity and the Formation of the Photovoltaic Industry in Eastern Germany," ERSA conference papers ersa10p1460, European Regional Science Association.
  6. Ron A. Boschma & Anet Weterings, 2004. "The effect of regional differences on the performance of software firms in the Netherlands," DRUID Working Papers 04-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  7. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
  8. Ron A. Boschma & Rik Wenting, 2004. "The spatial evolution of the British automobile industry," Papers in Evolutionary Economic Geography (PEEG) 0504, Utrecht University, Section of Economic Geography, revised Aug 2004.
  9. Luca Colombo & Herbert Dawid, 2008. "Complementary Assets, Start-Ups and Incentives to Innovate," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0080, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  10. Guido Buenstorf & Michael Fritsch & Luis Medrano, 2010. "Regional Knowledge and the Emergence of an Industry: Laser Systems Production in West Germany, 1975Ð2005," Papers in Evolutionary Economic Geography (PEEG) 1016, Utrecht University, Section of Economic Geography, revised Nov 2010.
  11. Weterings, Anet & Koster, Sierdjan, 2007. "Inheriting knowledge and sustaining relationships: What stimulates the innovative performance of small software firms in the Netherlands?," Research Policy, Elsevier, vol. 36(3), pages 320-335, April.
  12. Karl Wennberg, 2009. "Knowledge combinations and the survival of financial services ventures," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 259-276, April.
  13. Mario A. Maggioni, 2004. "The rise and fall of industrial clusters: Technology and the life cycle of region," Working Papers 2004/6, Institut d'Economia de Barcelona (IEB).
  14. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute for the Study of Labor (IZA).
  15. Anne Otto, 2006. "The Role of New Firms for the Development of Clusters," ERSA conference papers ersa06p275, European Regional Science Association.
  16. Leo van Grunsven, 2006. "New Industries in Southeast Asia’s Late Industrialization: Evolution versus Creation - The Automation Industry in Penang (Malaysia) considered," Papers in Evolutionary Economic Geography (PEEG) 0611, Utrecht University, Section of Economic Geography, revised Dec 2006.
  17. Ron Boschma & Rik Wenting, 2011. "The spatial clustering of the Dutch banking sector in the Amsterdam region: the importance of spinoffs and mergers in the period 1850-1993," ERSA conference papers ersa10p1158, European Regional Science Association.

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