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Heritage and Agglomeration: The Akron Tire Cluster Revisited

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Author Info
G. Buenstorf ()
S. Klepper

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Abstract

We use new data on the location and background of entrants into the U.S. tire industry to analyze the factors that caused the industry to be so regionally concentrated around Akron, Ohio, a small city with no particular advantages for tire production. We analyze the states where firms entered and for the Ohio entrants the counties where they originated and entered, and we conduct various analyses of how proximity to other tire firms and to demanders affected the longevity of tire producers. We also examine how the heritage of the Ohio entrants influenced their longevity. Our findings suggest that the Akron tire cluster grew primarily through a process of organizational reproduction and heredity rather than through agglomeration economies, as has been commonly posited by scholars of the industry.

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Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Econonmics and Evolution with number 2005-08.

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Length: 50 pages
Date of creation: Aug 2005
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Handle: RePEc:esi:evopap:2005-08

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  1. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May. [Downloadable!] (restricted)
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  2. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August. [Downloadable!] (restricted)
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  1. G. Buenstorf & D. Fornahl, 2006. "B2C - Bubble to Cluster: The Dot.com Boom, Spin-off Entrepreneurship, and Regional Industry Evolution," Papers on Econonmics and Evolution 2006-20, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  2. Anne Otto, 2006. "The Role of New Firms for the Development of Clusters," ERSA conference papers ersa06p275, European Regional Science Association. [Downloadable!]
  3. Guido Buenstorf & Christina Guenther, 2007. "No place like home? Location choice and firm survival after forced relocation in the German machine tool industry," Jena Economic Research Papers 2007-053, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
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  4. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2005. "Knowledge and Creative Destruction over the Industry Life Cycle - The Case of the German Automobile Industry," Jenaer Schriften zur Wirtschaftswissenschaft 05/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  5. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2005. "Entrepreneurial Founder Effects in the Growth of Regional Clusters: How Early Succes is a Key Determinant," DRUID Working Papers 05-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  6. G. Buenstorf, 2005. "How Useful Is Universal Darwinism as a Framework to Study Competition and Industrial Evolution?," Papers on Econonmics and Evolution 2005-02, Max Planck Institute of Economics, Evolutionary Economics Group.
  7. G. Buenstorf, 2006. "Comparative Industrial Evolution and the Quest for an Evolutionary Theory of Market Dynamics," Papers on Econonmics and Evolution 2006-23, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  8. G. Buenstorf, 2006. "Perception and pursuit of entrepreneurial opportunities: an evolutionary economics perspective," Papers on Econonmics and Evolution 2006-01, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  9. Guido Buenstorf, 2006. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Papers on Econonmics and Evolution 2005-20, Max Planck Institute of Economics, Evolutionary Economics Group.
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  10. Peter Thompson & Steven Klepper, 2006. "Intra-Industry Spinoffs," Working Papers 0605, Florida International University, Department of Economics. [Downloadable!]
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