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The Origins of Entrants and the Geography of the German Laser Industry

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  • Guido Buenstorf

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  • Matthias Geissler

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Abstract

Entry into an industry often clusters in regions where the industry is already concentrated, which is suggestive of agglomeration economies. Regional public research activities may exert another attracting force on entrants into science-based industries. Empirically these proximity effects are confounded by other influences on where entrants originate and locate. This paper begins to disentangle the effects of agglomeration, public research, and the supply of capable entrants for the German laser industry. Our findings indicate that the industry’s geography was shaped by the local availability of potential entrants rather than localization economies. The impact of public research increased over time.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2008-14.

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Date of creation: Dec 2008
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Handle: RePEc:esi:evopap:2008-14

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Keywords: Industry clusters; agglomeration economies; public research; entry; heritage Length 29 pages;

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References

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  1. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, 04.
  2. 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.
  3. BELLEFLAMME, Paul & PICARD, Pierre & THISSE, Jacques-François, . "An economic theory of regional clusters," CORE Discussion Papers RP -1464, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Guido Buenstorf, 2007. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Review of Industrial Organization, Springer, vol. 30(3), pages 179-202, May.
  5. David Audretsch & Erik Lehmann & Susanne Warning, 2004. "University Spillovers and New Firm Location," Working Papers of the Research Group Heterogenous Labor 04-13, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  6. Blind, Knut & Grupp, Hariolf, 1999. "Interdependencies between the science and technology infrastructure and innovation activities in German regions: empirical findings and policy consequences," Research Policy, Elsevier, vol. 28(5), pages 451-468, June.
  7. Buenstorf, Guido & Klepper, Steven, 2010. "Why does entry cluster geographically? Evidence from the US tire industry," Journal of Urban Economics, Elsevier, vol. 68(2), pages 103-114, September.
  8. 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.
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Cited by:
  1. Guido Bünstorf & Michael Fritsch & Luis F. Medrano, 2010. "Regional Knowledge and the Emergence of an Industry: Laser Systems Production in West Germany, 1975-2005," Jena Economic Research Papers 2010-079, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Luis F. Medrano E., 2012. "Patent Citations, University Inventor Patents, and Survival in the German Laser Source Industry (1960-2005)," Jena Economic Research Papers 2012-009, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Koen Frenken & Elena Cefis & Erik Stam, 2013. "Industrial dynamics and clusters: a survey," Working Papers 13-11, Utrecht School of Economics.
  4. Koen Frenken & Elena Cefis & Erik Stam, 2011. "Industrial dynamics and economic geography: a survey," Eindhoven Center for Innovation Studies (ECIS) working paper series 11-07, Eindhoven Center for Innovation Studies (ECIS).

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