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The Evolution of Geographic Structure in New Industries

  • Steven Klepper

We review the evolution of the market and geographic structure of the automobile, television receiver, and tyre industries in order to gain insights into the primary forces governing the agglomeration of industries. Spinoffs, which are firms founded by employees of incumbent producers, played a prominent role in the agglomerations that emerged around Detroit, MI and Akron, OH in the automobile and tyre industries respectively. The television receiver industry became less agglomerated over time, and this is connected with the domination of the industry by diversifiers from the radio industry. The patterns in all three industries are shown to be compatible with a theory of organisational birth and heredity proposed in Klepper (2003). JEL Classification: L65, R12, R30.

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Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): 97 bis (2006)
Issue (Month): 5 ()
Pages: 135-158

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Handle: RePEc:cai:reofsp:reof_073_0135
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  1. 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.
  2. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
  3. Stefano Breschi & Francesco Lissoni, 2003. "Mobility and Social Networks: Localised Knowledge Spillovers Revisited," KITeS Working Papers 142, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
  4. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
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