Advanced Search
MyIDEAS: Login to save this paper or follow this series

Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis

Contents:

Author Info

  • Henri L.F. de Groot

    ()
    (Vrije Universiteit Amsterdam)

  • Jacques Poot

    ()
    (University of Waikato, Hamilton, NZ)

  • Martijn J. Smit

    ()
    (Vrije Universiteit Amsterdam)

Abstract

Innovation and technological change are central to the quest for regional development. In the globally-connected knowledge-driven economy, the relevance of agglomeration forces that rely on proximity continues to increase, paradoxically despite declining real costs of information, communication and transportation. Globally, the proportion of the population living in cities continues to grow and sprawling cities remain the engines of regional economic transformation. The growth of cities results from a complex chain that starts with scale, density and geography, which then combines with industrial structure characterised by its extent of specialisation, competition and diversity, to yield innovation and productivity growth that encourages employment expansion, and further urban growth through inward migration. This paper revisits the central part of this virtuous circle, namely the Marshall-Arrow-Romer externalities (specialisation), Jacobs externalities (diversity) and Porter externalities (competition) that have provided alternative explanations for innovation and urban growth. The paper evaluates the statistical robustness of evidence for such externalities presented in 31 scientific articles, all building on the seminal work of Glaeser et al. (1992). These articles yield 393 estimates of those externalities, which are characterized by their sign and statistical significance. We aim to explain variation in estimation results using study characteristics by means of ordered probit analysis. The evidence in the literature on the role of the specific externalities is rather mixed, although for each type of externality we can identify how various aspects of primary study design, such as the adopted proxy for growth, the data used, and the choice of covariates influence the outcomes.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://papers.tinbergen.nl/07079.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-079/3.

as in new window
Length:
Date of creation: 10 Oct 2007
Date of revision:
Handle: RePEc:dgr:uvatin:20070079

Contact details of provider:
Web page: http://www.tinbergen.nl

Related research

Keywords: innovation; regional development; agglomeration; urban externalities; meta-analysis;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Andersson, Roland & Quigley, John. M & Wilhelmsson, Mats, 2005. "Agglomeration and the Spatial Distribution of Creativity," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 42, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  2. Peter Nijkamp & Jacques Poot, 1998. "original: Spatial perspectives on new theories of economic growth," The Annals of Regional Science, Springer, Springer, vol. 32(1), pages 7-37.
  3. Mark J. Koetse & Henri L.F. de Groot & Raymond J.G.M. Florax, 2006. "The Impact of Uncertainty on Investment: A Meta-Analysis," Tinbergen Institute Discussion Papers, Tinbergen Institute 06-060/3, Tinbergen Institute.
  4. G. M. Peter Swann & Rui Baptista, 1999. "A comparison of clustering dynamics in the US and UK computer industries," Journal of Evolutionary Economics, Springer, Springer, vol. 9(3), pages 373-399.
  5. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, National Bureau of Economic Research, Inc, in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
  6. Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(8), pages 911-927.
  7. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, Elsevier, vol. 43(2), pages 409-429, February.
  8. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers, Center for Policy Research, Maxwell School, Syracuse University 14, Center for Policy Research, Maxwell School, Syracuse University.
  9. Nijkamp, Peter & Poot, Jacques, 2004. "Meta-analysis of the effect of fiscal policies on long-run growth," European Journal of Political Economy, Elsevier, Elsevier, vol. 20(1), pages 91-124, March.
  10. Batisse, Cecile, 2002. "Dynamic externalities and local growth: A panel data analysis applied to Chinese provinces," China Economic Review, Elsevier, Elsevier, vol. 13(2-3), pages 231-251.
  11. Mody, Ashoka & Wang, Fang-Yi, 1997. "Explaining Industrial Growth in Coastal China: Economic Reforms . . . and What Else?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(2), pages 293-325, May.
  12. Cainelli Giulio & Leoncini Riccardo, 1999. "Esternalità e sviluppo industriale di lungo periodo in Italia. Un'analisi a livello provinciale," L'industria, Società editrice il Mulino, Società editrice il Mulino, issue 1, pages 147-166.
  13. Mark D. Partridge & Dan S. Rickman, 1999. "Static and Dynamic Externalities, Industry Composition, and State Labor Productivity: A Panel Study of States," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 319-335, October.
  14. Richard R. Nelson & Sidney G. Winter, 2002. "Evolutionary Theorizing in Economics," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(2), pages 23-46, Spring.
  15. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-041/3, Tinbergen Institute.
  16. Charles King & Alvin J. Silk & Niels Ketelhöhn, 2003. "Knowledge Spillovers and Growth in the Disagglomeration of the Us Advertising-Agency Industry," Journal of Economics & Management Strategy, Wiley Blackwell, Wiley Blackwell, vol. 12(3), pages 327-362, 09.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Burger, M.J. & van Oort, F.G. & van der Knaap, G.A., 2008. "A Treatise on the Geographical Scale of Agglomeration Externalities and the Modifiable Areal Unit Problem," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2008-076-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  2. Ron Boschma & KOen Frenken, 2010. "The emerging empirics of evolutionary economic geography," Eindhoven Center for Innovation Studies (ECIS) working paper series, Eindhoven Center for Innovation Studies (ECIS) 10-10, Eindhoven Center for Innovation Studies (ECIS), revised Nov 2010.
  3. Brown, Jason P. & Lambert, Dayton M. & Florax, Raymond J.G.M., 2010. "Manufacturing Transition in Local Economies: A Regional Adjustment Model," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado, Agricultural and Applied Economics Association 61130, Agricultural and Applied Economics Association.
  4. Baltzopoulos, Apostolos, 2009. "Agglomeration Externalities and Entrepreneurship - micro-level evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 190, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Autant-Bernard, Corinne & Fadairo, Muriel & Massard, Nadine, 2013. "Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence," Research Policy, Elsevier, Elsevier, vol. 42(1), pages 196-210.
  6. Friso de Vor & Henri L.F. de Groot, 2008. "Agglomeration Externalities and Localized Employment Growth," Tinbergen Institute Discussion Papers, Tinbergen Institute 08-033/3, Tinbergen Institute.
  7. Roberto BASILE & Cristiana DONATI & Rosanna PITTIGLIO, 2013. "Industry Structure And Employment Growth: Evidence From Semiparametric Geoadditive Models," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 121-160.
  8. Martijn J. Smit & Maria A. Abreu & Henri L.F. de Groot, 2010. "Micro-Evidence on the Determinants of Innovation in The Netherlands: The Relative Importance of Absorptive Capacity and Agglomeration Externalities," Tinbergen Institute Discussion Papers, Tinbergen Institute 10-060/3, Tinbergen Institute.
  9. Koen Frenken & Elena Cefis & Erik Stam, 2013. "Industrial dynamics and clusters: a survey," Working Papers, Utrecht School of Economics 13-11, Utrecht School of Economics.
  10. Stefan Groot & Henri de Groot & Martijn Smit, 2011. "Regional wage differences in the Netherlands: Micro-evidence on agglomeration externalities," CPB Discussion Paper 184, CPB Netherlands Bureau for Economic Policy Analysis.
  11. Valerien O. Pede & Raymond J.G.M. Florax & Henri L.F. de Groot, 2011. "Technological Leadership and Sectoral Employment Growth:A Spatial Econometric Analysis for U.S. Counties," Working Papers, Purdue University, College of Agriculture, Department of Agricultural Economics 11-1, Purdue University, College of Agriculture, Department of Agricultural Economics.
  12. Friso Vor & Henri Groot, 2010. "Agglomeration externalities and localized employment growth: the performance of industrial sites in Amsterdam," The Annals of Regional Science, Springer, Springer, vol. 44(3), pages 409-431, June.
  13. Veneri, Paolo & Burgalassi, David, 2010. "Questioning polycentric development and its effects: issues of definition and measurement for the Italian NUTS 2 Regions," MPRA Paper 26410, University Library of Munich, Germany.
  14. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG), Utrecht University, Section of Economic Geography 1327, Utrecht University, Section of Economic Geography, revised Dec 2013.
  15. A. Lasagni, 2009. "Agglomeration economies: new evidence on IT employment growth in Italy," Economics Department Working Papers 2009-EP08, Department of Economics, Parma University (Italy).
  16. Roos K. Andadari & Henri L.F. de Groot & Piet Rietveld, 2012. "Production Externalities in the Wood Furniture Industry in Central Java," Tinbergen Institute Discussion Papers, Tinbergen Institute 12-072/3, Tinbergen Institute.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dgr:uvatin:20070079. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.