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Spatial distribution of new firms and firm‐level innovation: Evidence from Turkey

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  • Burhan Can Karahasan

Abstract

This paper examines the spatial distribution of new firms and tests the impact of new firms' agglomeration on firm‐level innovation. Our findings from a spatially unequal economy, Turkey, show that firms that are located in regions hosting more new firms have a higher propensity to be innovative. Moreover, we found that firms located in regions that are spatially connected to others with higher new firm formation are also more innovative. However, impact of local and spatial externalities created by agglomeration effects are conditional on the development level of regions. Este artículo examina la distribución espacial de las nuevas empresas y pone a prueba el impacto de la aglomeración de nuevas empresas en la innovación a nivel de empresa. Los resultados de una economía espacialmente desigual como Turquía muestran que las empresas situadas en regiones que acogen a más empresas nuevas tienen una mayor propensión a ser innovadoras. Además, se observó que las empresas situadas en regiones conectadas espacialmente con otras en las que la creación de nuevas empresas es elevada también son más innovadoras. Sin embargo, el impacto de las externalidades locales y espaciales creadas por los efectos de aglomeración está condicionado por el nivel de desarrollo de las regiones. 本稿では、新規企業の空間分布を検討し、新規企業の集積が企業レベルでのイノベーションに与える影響を検証する。空間的に不平等な経済であるトルコの調査結果から、より多くの新規企業を受け入れる地域に立地する企業は、イノベーティブな企業である傾向が高いことが示される。さらに、新規企業の創業率が高い他の地域と空間的につながっている地域にある企業も、よりイノベーティブであることがわかった。しかし、集積効果によって生じる局所的及び空間的外部性の影響は、地域の発展レベルによって異なっている。

Suggested Citation

  • Burhan Can Karahasan, 2023. "Spatial distribution of new firms and firm‐level innovation: Evidence from Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2156-2181, December.
  • Handle: RePEc:bla:rgscpp:v:15:y:2023:i:9:p:2156-2181
    DOI: 10.1111/rsp3.12679
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