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The Impact of Aging and Technological Relatedness on Agglomeration Externalities: A Survival Analysis

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  • Ron Boschma
  • Martin Henning
  • Frank Neffke

Abstract

We study localization, urbanization, and Jacobs' externality effects on plant survival inSweden (1970-2004). We focus on two questions: (1) do agglomeration externalities changewith the age of plants? (2) using new information about the relatedness among industries,what is the role of technological relatedness among local industries? We find thatagglomeration externalities affect survival chances of plants. This effect, however, differsbetween corporate and non-affiliated plants. Furthermore, we find that Jacobs' externalitiesbenefit only young plants, whereas urbanization externalities harm plants at all ages.Localization externalities are insignificant, while the presence of related industriessubstantially increases survival rates.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0036.

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Date of creation: Nov 2009
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Handle: RePEc:cep:sercdp:0036

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: Agglomeration Externalities; nursery cities; Cox Regression; Aalen; plant survival; Sweden;

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  1. Frank Neffke & Martin Svensson Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2008. "Who Needs Agglomeration? Varying Agglomeration Externalities and the Industry Life Cycle," Papers in Evolutionary Economic Geography (PEEG) 0808, Utrecht University, Section of Economic Geography, revised Apr 2008.
  2. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2004. "Firm Survival in the German Automobile Industry," Jenaer Schriften zur Wirtschaftswissenschaft 08/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
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  13. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  14. Rajshree Agarwal & Michael Gort, 2002. "Firm and Product Life Cycles and Firm Survival," American Economic Review, American Economic Association, vol. 92(2), pages 184-190, May.
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Cited by:
  1. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
  2. Rikard Eriksson & Martin Henning & Anne Otto, 2014. "Regional and industrial mobility of workers leaving mature industries. A study of individuals who exit the Swedish shipbuilding industry 1970-2000," Papers in Evolutionary Economic Geography (PEEG) 1415, Utrecht University, Section of Economic Geography, revised Jul 2014.
  3. Neil Lee & Andrés Rodríguez-Pose, 2012. "Original innovation, learnt innovation and cities: Evidence from UK SMEs," Papers in Evolutionary Economic Geography (PEEG) 1223, Utrecht University, Section of Economic Geography, revised Nov 2012.
  4. Frank Neffke & Martin Henning, 2011. "Inter-industry linkages in local economies," ERSA conference papers ersa11p1075, European Regional Science Association.
  5. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Eric Strobl, 2014. "Natural Disasters and the Birth, Life and Death of Plants: The Case of the Kobe Earthquake," Working Papers 2014-114, Department of Research, Ipag Business School.
  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. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2014. "Firm Growth and the Spatial Impact of Geolocated External Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(2-3), pages 234-256, April.
  8. Gerard Brady & Eleanor Doyle & Lisa Noonan, 2013. "Trade Sophistication Indicators: Balancing Diversity and Specialization," International Advances in Economic Research, Springer, vol. 19(4), pages 425-438, November.

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