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Jurisdictional Advantage

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Author Info
Maryann Feldman
Roger Martin
Abstract

Our objective in this paper is to define jurisdictional advantage, the recognition that location is critical to firms' innovative success and that every location has unique assets that are not easily replicated. The purpose is to be normative and policy oriented. Drawing from the well-developed literature on corporate strategy, we consider analogies to cities in their search for competitive advantage. In contrast to the more passive term locational advantage, our use of the term jurisdiction denotes geographically-defined legal and political decision-making authority and coordination. Thus, jurisdictions may be constructed and managed to promote a coherent activity set. We review recent advances in our understanding of patterns of urban specialization and the composition of activities within cities, which suggest strategies that may generate economic growth as well as those strategies to avoid. This paper then considers the role of firms and their responsibility to jurisdictions in light of the net benefits received from place-specific externalities, and concludes by considering the challenges to implementing jurisdictional advantage.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10802.

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Date of creation: Oct 2004
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Handle: RePEc:nbr:nberwo:10802

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Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
R5 - Urban, Rural, and Regional Economics - - Regional Government Analysis
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location

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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.:
  1. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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  2. J. Vernon Henderson, 1994. "Externalities and Industrial Development," NBER Working Papers 4730, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February. [Downloadable!] (restricted)
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  4. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October. [Downloadable!] (restricted)
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  5. Leslie E. Papke, 1991. "Interstate Business Tax Differentials and New Firm Location: Evidence from Panel Data," NBER Working Papers 3184, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Timothy J. Bartik, 2003. "Local Economic Development Policies," Staff Working Papers 03-91, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  7. Orsenigo, Luigi, 2001. " The (Failed) Development of a Biotechnology Cluster: The Case of Lombardy," Small Business Economics, Springer, vol. 17(1-2), pages 77-92, Aug.-Sept. [Downloadable!] (restricted)
  8. Carlsson, Bo, 2002. " Institutions, Entrepreneurship, and Growth: Biomedicine and Polymers in Sweden and Ohio," Small Business Economics, Springer, vol. 19(2), pages 105-21, September. [Downloadable!] (restricted)
  9. Kenney, Martin & von Burg, Urs, 1999. "Technology, Entrepreneurship and Path Dependence: Industrial Clustering in Silicon Valley and Route 128," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 67-103, March.
  10. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 545-546, August. [Downloadable!] (restricted)
  11. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 645-666, August.
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  1. Simona Iammarino & Cecilia Jona-Lasini & Susanna Mantegazza, 2004. "Labour productivity, ICT and regions: The revival of Italian “dualism”?," SPRU Electronic Working Paper Series 127, University of Sussex, SPRU - Science and Technology Policy Research. [Downloadable!]
  2. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank. [Downloadable!]
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