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The Advantages of Agglomeration in the Knowledge Economy: Empirical Evidence for German Municipalities

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  • Oliver Falck
  • Stephan Heblich
  • Anne Otto

Abstract

Do pools of highly-qualified workers in a region guarantee growth? This correlation often underpins policies to promote regional development and promote the settlement and networking of knowledge-intensive branches and companies. The empirical evidence presented by this article, however, shows that agglomeration advantages do not always arise. The success of such a cluster and network policy largely depends on the efficacy of regional agglomeration forces and is therefore not guaranteed.

Suggested Citation

  • Oliver Falck & Stephan Heblich & Anne Otto, 2013. "The Advantages of Agglomeration in the Knowledge Economy: Empirical Evidence for German Municipalities," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(03), pages 17-21, February.
    • Handle: RePEc:ces:ifosdt:v:66:y:2013:i:03:p:17-21
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    References listed on IDEAS

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    1. Falck, Oliver & Fritsch, Michael & Heblich, Stephan, 2011. "The phantom of the opera: Cultural amenities, human capital, and regional economic growth," Labour Economics, Elsevier, vol. 18(6), pages 755-766.
    2. Gilles Duranton, 2011. "California Dreamin': The Feeble Case for Cluster Policies," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 3(1), pages 3-45, July.
    3. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    4. Falck, Oliver & Heblich, Stephan & Kipar, Stefan, 2010. "Industrial innovation: Direct evidence from a cluster-oriented policy," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 574-582, November.
    5. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2011. "The identification of agglomeration economies," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 253-266, March.
    6. Enrico Moretti, 2014. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 275-331.
    7. Lissoni, Francesco, 2001. "Knowledge codification and the geography of innovation: the case of Brescia mechanical cluster," Research Policy, Elsevier, vol. 30(9), pages 1479-1500, December.
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    Cited by:

    1. Oliver Falck & Robert Gold & Stephan Heblich, 2014. "E-lections: Voting Behavior and the Internet," American Economic Review, American Economic Association, vol. 104(7), pages 2238-2265, July.
    2. Christian Dippel & Robert Gold & Stephan Heblich & Rodrigo Pinto, 2017. "Instrumental Variables and Causal Mechanisms: Unpacking the Effect of Trade on Workers and Voters," CESifo Working Paper Series 6816, CESifo.
    3. Christian Dippel & Robert Gold & Stephan Heblich, 2015. "Globalization and Its (Dis-)Content: Trade Shocks and Voting Behavior," NBER Working Papers 21812, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • D00 - Microeconomics - - General - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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