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Concentration, Coagglomeration and Spillovers: The Geography of New Market Firms in Germany

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  • Dirk Dohse

    ()

  • Sven-Christian Steude

    ()

Abstract

The Neuer Markt, launched in 1997 by Deutsche Börse, the German stock exchange, is Europe’s closest equivalent to the Nasdaq, the US high-tech oriented stock market. Although the New Economy in Germany is not restricted to Neuer Markt firms one may argue that these firms and their employees form the spearhead of Germany’s New Economy. In the current paper we employ the ‘dartboard approach’ pioneered by Ellison and Glaeser to analyse the spatial concentration of New Economy employment in Germany, the coagglomeration of firms belonging to different sub-sectors of Neuer Markt and the (intraregional) spillovers between different high tech industries. We refine the analysis by differentiating between Neuer Markt firms in general and New Economy firms in a more narrow sense, and we compare their spatial distribution with the structure of the ‘traditional economy’ as well as with the spatial distribution of other innovative activities such as patent applications or R&D. Key Words: Geographic concentration, New Economy, Neuer Markt, Dartboard Approach JEL Classification: G19, O30, O18, R11

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p230.

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Date of creation: Aug 2003
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Handle: RePEc:wiw:wiwrsa:ersa03p230

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  1. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(5), pages 575-604, September.
  3. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 34(5), pages 533-564, September.
  4. Rolf Sternberg & Christine Tamasy, 1999. "Munich as Germany's No. 1 High Technology Region: Empirical Evidence, Theoretical Explanations and the Role of Small Firm/Large Firm Relationships," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(4), pages 367-377.
  5. Dohse, Dirk, 2000. "Regionen als Innovationsmotoren: zur Neuorientierung in der deutschen Technologiepolitik," Kiel Discussion Papers, Kiel Institute for the World Economy (IfW) 366, Kiel Institute for the World Economy (IfW).
  6. Dirk Dohse & Andrea Schertler, 2003. "Explaining the Regional Distribution of New Economy Firms � A Count Data Analysis," Kiel Working Papers, Kiel Institute for the World Economy 1193, Kiel Institute for the World Economy.
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Cited by:
  1. Vinish Kathuria, 2011. "What Causes Agglomeration? – Policy or Infrastructure – A Study of Indian Manufacturing Industry," Working Papers id:4473, eSocialSciences.

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