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The Evolution of Geographic Structure in New Industries

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  • Steven Klepper

Abstract

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.

Suggested Citation

  • Steven Klepper, 2006. "The Evolution of Geographic Structure in New Industries," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 135-158.
  • Handle: RePEc:cai:reofsp:reof_073_0135
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    References listed on IDEAS

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    1. 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.
    2. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, April.
    3. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
    4. 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.
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    Cited by:

    1. Järvinen, Joonas & Lamberg, Juha-Antti & Pietinalho, Lauri, 2012. "The fall and the fragmentation of national clusters: Cluster evolution in the paper and pulp industry," Journal of Forest Economics, Elsevier, vol. 18(3), pages 218-241.
    2. Breul Moritz & Broekel Tom & Brachert Matthias, 2015. "Die Treiber der räumlichen Emergenz und Konzentration der Photovoltaik- Industrie in Deutschland," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 59(3), pages 133-150, December.
    3. Thomas Brenner & Matthias Duschl, 2014. "Modelling Firm and Market Dynamics - A Flexible Model Reproducing Existing Stylized Facts," Working Papers on Innovation and Space 2014-07, Philipps University Marburg, Department of Geography.
    4. Guido Buenstorf & Christina Guenther, 2007. "No Place like Home? Location choice and firm survival after forced relocation in the German machine tool industry," DRUID Working Papers 07-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    5. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press, vol. 24(4), pages 859-873.
    6. Tobias Scholl & Thomas Brenner & Martin Wendel, 2012. "Evolving localization patterns of company foundations - Evidence from the German MST-industry," Working Papers on Innovation and Space 2012-05, Philipps University Marburg, Department of Geography.
    7. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
    8. Tobias Scholl & Thomas Brenner & Martin Wendel, 2016. "Evolving localization patterns of company foundationsEvidence from the German MST-industry," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1067-1087, December.
    9. Gabriela Dutrénit & Morris Teubal, 2011. "Coevolution, Emergence and Economic Development: Some Lessons from the Israeli and Mexican Experience," Chapters,in: Handbook on the Economic Complexity of Technological Change, chapter 18 Edward Elgar Publishing.
    10. Brenner Thomas, 2008. "Cluster dynamics and policy implications," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 52(1), pages 146-162, October.
    11. Strambach Simone & Halkier Henrik, 2013. "Editorial. Reconceptualizing change," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 57(1-2), pages 1-14, October.
    12. Gil Avnimelech & Morris Teubal, 2010. "The Co-evolution of ICT, VC and Policy in Israel During the 1990s," Chapters,in: Emerging Clusters, chapter 6 Edward Elgar Publishing.

    More about this item

    Keywords

    agglomeration; spinoffs; entry;

    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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