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Industry-specific firm growth and aggolmeration

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  • Matthias Duschl

    ()
    (Department of Geography, University Marburg)

  • Tobias Scholl

    ()
    (House of Logistics and Mobility GmbH, University Marburg)

  • Thomas Brenner

    ()
    (Department of Geography, Philipps University Marburg)

  • Dennis Luxen

    ()
    (Karlsruhe Institute of Technology)

  • Falk Raschke

    ()
    (House of Logistics and Mobility GmbH, University Frankfurt)

Abstract

This paper studies the industry-specific relationship between industrial clustering and firm growth. Micro-geographically defined agglomeration measures, free of the modifiable areal unit problem (MAUP), are used to study 23 industries. The spatial impacts of agglomeration of related economic and knowledge generating activities are examined by using travel time distances, a flexible log-logistic decay function framework and quantile regression techniques. We find that firms’ growth prospects tend to be hampered by the agglomeration of own-industry employment, but improved by proximate scientific activity. Results depend on the kind and age of industry. Furthermore, the optimal decay functions that measure agglomeration effects considerably vary both between the industries and variables. Three illustrative cases of industries are discussed in more details.

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Bibliographic Info

Paper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2012-06.

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Length: 31 pages
Date of creation: 19 Dec 2012
Date of revision:
Handle: RePEc:pum:wpaper:2012-06

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Keywords: Firm growth; industrial clusters; agglomeration; MAUP; distance decay function; quantile regression;

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Cited by:
  1. Matthias Duschl & Thomas Brenner, 2013. "Growth dynamics in regional systems of technological activities – A SVAR approach," Working Papers on Innovation and Space, Philipps University Marburg, Department of Geography 2013-12, Philipps University Marburg, Department of Geography.
  2. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2014. "Firm Growth and the Spatial Impact of Geolocated External Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(2-3), pages 234-256, April.
  3. Augusto Cerqua & Guido Pellegrini, 2014. "Beyond the SUTVA: how policy evaluations change when we allow for interactions among firms," Working Papers, Sapienza University of Rome, DISS 2/14, Sapienza University of Rome, DISS.

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