Advanced Search
MyIDEAS: Login to save this paper or follow this series

Industry-specific firm growth and aggolmeration

Contents:

Author Info

  • 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://137.248.191.199/RePEc/pum/wpaper/wp0612.pdf
File Function: Full text
Download Restriction: no

Bibliographic Info

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

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

Contact details of provider:
Postal: Deutschhausstrasse 10, 35032 Marburg
Phone: 064212824257
Fax: 064212828950
Email:
Web page: http://www.uni-marburg.de/fb19/
More information through EDIRC

Related research

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

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Jacob J. de Vries & Peter Nijkamp & Piet Rietveld, 2004. "Exponential or Power Distance-decay for Commuting? An Alternative Specification," Tinbergen Institute Discussion Papers 04-097/3, Tinbergen Institute.
  2. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
  3. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  4. Andres Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," ERSA conference papers ersa06p371, European Regional Science Association.
  5. Michael J. Artis & Ernest Miguelez & Rosina Moreno, 2012. "Agglomeration economies and regional intangible assets: an empirical investigation," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1167-1189, November.
  6. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer, vol. 43(1), pages 159-180, March.
  7. Antony Potter & H. Doug Watts, 2011. "Evolutionary agglomeration theory: increasing returns, diminishing returns, and the industry life cycle," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 417-455, May.
  8. 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).
  9. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
  10. Martijn J. Burger & Frank G. van Oort & Bert van der Knaap, 2010. "A Treatise on the Geographical Scale of Agglomeration Externalities and the MAUP," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 9(1), pages 19-39.
  11. Rikard H. Eriksson, 2011. "Localized Spillovers and Knowledge Flows: How Does Proximity Influence the Performance of Plants?," Economic Geography, Clark University, vol. 87(2), pages 127-152, 04.
  12. Ron Boschma & Dirk Fornahl, 2011. "Cluster Evolution and a Roadmap for Future Research," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1295-1298, November.
  13. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, 04.
  14. Guido Buenstorf & Steven Klepper, 2005. "Heritage and Agglomeration: The Akron Tire Cluster Revisited," Papers on Economics and Evolution 2005-08, Philipps University Marburg, Department of Geography.
  15. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
  16. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
  17. Andersson, Martin & Lööf, Hans, 2009. "Agglomeration and Productivity - evidence from firm-level data," Working Paper Series in Economics and Institutions of Innovation 170, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  18. 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.
  19. Mercedes Delgado & Michael E. Porter & Scott Stern, 2012. "Clusters, Convergence, and Economic Performance," NBER Working Papers 18250, National Bureau of Economic Research, Inc.
  20. Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2010. "Spillovers in Space: Does Geography Matter?," CEP Discussion Papers dp0991, Centre for Economic Performance, LSE.
  21. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe," LSE Research Online Documents on Economics 23326, London School of Economics and Political Science, LSE Library.
  22. Martin Andersson & Charlie Karlsson, 2007. "Knowledge in Regional Economic Growth—The Role of Knowledge Accessibility," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 129-149.
  23. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  24. Otto, Anne & Fornahl, Dirk, 2008. "Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation," IAB Discussion Paper 200813, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  25. Daniel J Graham, 2009. "Identifying urbanisation and localisation externalities in manufacturing and service industries," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 63-84, 03.
  26. Cassia, Lucio & Colombelli, Alessandra & Paleari, Stefano, 2009. "Firms' growth: Does the innovation system matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 211-220, September.
  27. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  28. Stephen Hymer & Peter Pashigian, 1962. "Firm Size and Rate of Growth," Journal of Political Economy, University of Chicago Press, vol. 70, pages 556.
  29. Daan P. van Soest & Shelby Gerking & Frank G. van Oort, 2006. "Spatial Impacts Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 881-899.
  30. John R. Baldwin & W. Mark Brown & David L. Rigby, 2010. "Agglomeration Economies: Microdata Panel Estimates From Canadian Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 50(5), pages 915-934, December.
  31. Joris Pinkse & Margaret E. Slade, 2010. "The Future Of Spatial Econometrics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 103-117.
  32. Catherine Beaudry & G. Swann, 2009. "Firm growth in industrial clusters of the United Kingdom," Small Business Economics, Springer, vol. 32(4), pages 409-424, April.
  33. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  34. Giovanni Dosi & Sébastien Lechevalier & Angelo Secchi, 2010. "Introduction: Interfirm heterogeneity--nature, sources and consequences for industrial dynamics," Industrial and Corporate Change, Oxford University Press, vol. 19(6), pages 1867-1890, December.
  35. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
  36. Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
  37. John Baldwin & Desmond Beckstead & W. Mark Brown & David Rigby, 2008. "Agglomeration and the Geography of Localization Economies in Canada," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 117-132.
  38. Gregory Spencer & Tara Vinodrai & Meric Gertler & David Wolfe, 2010. "Do Clusters Make a Difference? Defining and Assessing their Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 697-715.
  39. David B. audretsch & Erik E. Lehmann, 2005. "Mansfield's Missing Link: The Impact of Knowledge Spillovers on Firm Growth," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 207-210, 01.
  40. David L. Rigby & J¸rgen Essletzbichler, 2002. "Agglomeration economies and productivity differences in US cities," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 407-432, October.
  41. Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
  42. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
  43. Elicia Maine & Daniel Shapiro & Aidan Vining, 2010. "The role of clustering in the growth of new technology-based firms," Small Business Economics, Springer, vol. 34(2), pages 127-146, February.
  44. Luigi Guiso & Fabiano Schivardi, 2007. "Spillovers in Industrial Districts," Economic Journal, Royal Economic Society, vol. 117(516), pages 68-93, 01.
  45. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(1), pages 79-107, April.
  46. Karl Wennberg & Göran Lindqvist, 2010. "The effect of clusters on the survival and performance of new firms," Small Business Economics, Springer, vol. 34(3), pages 221-241, April.
  47. Matthias Buerger & Tom Broekel & Alex Coad, 2012. "Regional Dynamics of Innovation: Investigating the Co-evolution of Patents, Research and Development (R&D), and Employment," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 565-582, August.
  48. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
  49. Anders Malmberg & Bo Malmberg & Per Lundequist, 2000. "Agglomeration and firm performance: economies of scale, localisation, and urbanisation among Swedish export firms," Environment and Planning A, Pion Ltd, London, vol. 32(2), pages 305-321, February.
  50. Drucker, Joshua & Feser, Edward, 2012. "Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 1-14.
  51. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 39(3), pages 414-435.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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, vol. 234(2-3), pages 234-256, April.
  2. Augusto Cerqua & Guido Pellegrini, 2014. "Beyond the SUTVA: how policy evaluations change when we allow for interactions among firms," Working Papers 2/14, Sapienza University of Rome, DISS.
  3. Matthias Duschl & Thomas Brenner, 2013. "Growth dynamics in regional systems of technological activities – A SVAR approach," Working Papers on Innovation and Space 2013-12, Philipps University Marburg, Department of Geography.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pum:wpaper:2012-06. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christoph Mengs).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.