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Co-agglomeration of Knowledge-Intensive Business Services and Multinational Enterprises

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  • Wouter Jacobs
  • Hans R.A. Koster
  • Frank van Oort

Abstract

It has been argued that the relationship between knowledge intensive business services (KIBS) and multi-national enterprises (MNEs) within the regional economy is advantageous for urban and regional dynamics. It is likely that KIBS aim to locate proximate to (internationally operating) MNEs because of agglomeration externalities. The impact of MNEs on the birth of KIBS has rarely been examined, and the research on the new formation of KIBS has mainly adopted a case study approach, thus limiting the opportunity for generalisation. We have taken a more quantitative approach using a continuous space framework to test whether proximity is important for the co-location of KIBS and MNEs in the metropolitan area of Amsterdam in the Netherlands. Our results, controlled for other location factors, indicate that KIBS are co-agglomerated with MNEs and that the presence of a MNE significantly influences the birth of KIBS nearby, but the effect on such start-ups is considerably smaller than the positive effect of the presence of already established KIBS. We discuss the implications for urban and regional development strategies and policy initiatives.

Suggested Citation

  • Wouter Jacobs & Hans R.A. Koster & Frank van Oort, 2012. "Co-agglomeration of Knowledge-Intensive Business Services and Multinational Enterprises," Papers in Evolutionary Economic Geography (PEEG) 1225, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2012.
    • Handle: RePEc:egu:wpaper:1225
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    Cited by:

    1. Shinya Fukui, 2020. "Firm Agglomeration in Knowledge Intensive Business Service Sectors," Discussion Papers 2008, Graduate School of Economics, Kobe University.
    2. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 2020. "Multinational enterprises, industrial relatedness and employment in European regions [Innovation: mapping the winds of creative destruction]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    3. Tuochen Li & Dongri Han & Shaosong Feng & Lei Liang, 2019. "Can Industrial Co-Agglomeration between Producer Services and Manufacturing Reduce Carbon Intensity in China?," Sustainability, MDPI, vol. 11(15), pages 1-15, July.
    4. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    5. Thomas Brenner & Marco Capasso & Matthias Duschl & Koen Frenken & Tania Treibich, 2018. "Causal relations between knowledge-intensive business services and regional employment growth," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 172-183, February.
    6. Justine Kyove & Katerina Streltsova & Ufuoma Odibo & Giuseppe T. Cirella, 2021. "Globalization Impact on Multinational Enterprises," World, MDPI, vol. 2(2), pages 1-15, April.
    7. Di Matteo, Dante & Mariotti, Ilaria & Rossi, Federica, 2023. "Transport infrastructure and economic performance: An evaluation of the Milan-Bologna high-speed rail corridor," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    8. Andrea Ascani & Simona Iammarino, 2018. "Multinational enterprises, service outsourcing and regional structural change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(6), pages 1585-1611.
    9. Atakhan-Kenneweg, Melda & Oerlemans, Leon A.G. & Raab, Jörg, 2021. "New inter-organizational knowledge tie formation after firm relocation: Investigating the impact of spatial, relational, and temporal context," Journal of Business Research, Elsevier, vol. 127(C), pages 264-276.
    10. Dioni Elche & Davide Consoli & Mabel Sánchez-Barrioluengo, 2021. "From brawn to brains: manufacturing–KIBS interdependency," Regional Studies, Taylor & Francis Journals, vol. 55(7), pages 1282-1298, July.
    11. Li, Dongkun & Chen, Xiaohong & Wohlfarth, Paul, 2022. "Public participation, investment networks, and China's outward FDI: Evidence from 58 countries along the belt and road," Emerging Markets Review, Elsevier, vol. 51(PB).
    12. Jan Ženka & Josef Novotný & Ondřej Slach & Igor Ivan, 2017. "Spatial Distribution of Knowledge-Intensive Business Services in a Small Post-Communist Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 385-406, June.
    13. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 0. "Multinational enterprises, industrial relatedness and employment in European regions," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    14. valter di Giacinto & Giacinto Micucci & Alessandro Tosoni, 2018. "Knowledge intensive business services and urban areas: an analysis of localization and productivity on Italian data," Questioni di Economia e Finanza (Occasional Papers) 443, Bank of Italy, Economic Research and International Relations Area.
    15. Valter Giacinto & Giacinto Micucci & Alessandro Tosoni, 2020. "The agglomeration of knowledge-intensive business services firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 557-590, December.
    16. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2017. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 131-161, March.
    17. Ronnié Figueiredo & João José Matos Ferreira, 2020. "Spinner Model: Prediction of Propensity to Innovate Based on Knowledge-Intensive Business Services," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1316-1335, December.
    18. Rulong Zhuang & Kena Mi & Zhangwei Feng, 2021. "Industrial Co-Agglomeration and Air Pollution Reduction: An Empirical Evidence Based on Provincial Panel Data," IJERPH, MDPI, vol. 18(22), pages 1-19, November.
    19. Yizhou Wu & Peilei Fan & Heyuan You, 2018. "Spatial Evolution of Producer Service Sectors and Its Influencing Factors in Cities: A Case Study of Hangzhou, China," Sustainability, MDPI, vol. 10(4), pages 1-23, March.
    20. Koster, Hans R.A. & van Ommeren, Jos & Rietveld, Piet, 2014. "Estimation of semiparametric sorting models: Explaining geographical concentration of business services," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 14-28.

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    More about this item

    Keywords

    knowledge intensive business services; multi-national enterprises; start-ups; point pattern methodology; Amsterdam.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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