Agglomeration economies and entrepreneurship: testing for spatial externalities in the Dutch ICT industry
AbstractAlthough there is growing evidence on the role of agglomeration economies in the formation and growth of firms, both the concepts of agglomeration economies and entrepreneurship tend to be ambiguously defined and measured in the literature. In this study, we aim to improve the conceptualisations and measures of agglomeration economies and entrepreneurship. Indicators of agglomeration economies are analysed in clearly defined urban regimes on three spatial scales in the Netherlands – national zoning, labour market connectedness, and urban size. This is done in order to uncover their effect on two entrepreneurial phases in the firm life cycle - new firm formation and the growth of incumbent firms in the relatively new ICT industry in the Netherlands. In comparison with new firm formation, the growth of incumbent firms is not so much related to spatial clustering of the ICT industry and other localized sources of knowledge economies associated with urban density. Instead, knowledge as an input for growth of incumbent firms is associated with more endogenous (firm internal) learning aspects, reflected by a significant correlate with R&D-investments. Also the effect of local ICT firm competition differs between the two types of firms: a positive effect on new firm formation, but a negative effect on incumbent firm growth. In general, agglomeration economies have stronger effects on the formation of ICT firms than on the growth of ICT firms.
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Bibliographic InfoPaper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0508.
Length: 32 pages
Date of creation: Mar 2005
Date of revision: Mar 2005
agglomeration economics; spatial externalities; entrepreneurship; location; urban regimes; ICT industry;
Other versions of this item:
- Erik Stam & Frank G. van Oort, . "Agglomeration economies and entrepreneurship: testing for spatial externalities in the Dutch ICT industry," Papers on Entrepreneurship, Growth and Public Policy 2005-09, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-01 (All new papers)
- NEP-CSE-2006-01-01 (Economics of Strategic Management)
- NEP-EEC-2006-01-01 (European Economics)
- NEP-ENT-2006-01-01 (Entrepreneurship)
- NEP-GEO-2006-01-01 (Economic Geography)
- NEP-HRM-2006-01-01 (Human Capital & Human Resource Management)
- NEP-INO-2006-01-01 (Innovation)
- NEP-TID-2006-01-01 (Technology & Industrial Dynamics)
- NEP-URE-2006-01-01 (Urban & Real Estate Economics)
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.:
- Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
- Oedzge Atzema, 2001. "Location and local networks of ICT firms in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 92(3), pages 369-378, 08.
- Bos Jaap W.B. & Stam Erik, 2011.
"Gazelles, Industry Growth and Structural Change,"
018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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