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Heritage and Agglomeration: The Akron Tyre Cluster Revisited

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  • Guido Buenstorf
  • Steven Klepper

Abstract

We use new data on the location and background of entrants into the US tyre industry to analyse why the industry became so regionally concentrated around Akron, Ohio, a small city with no compelling advantages for tyre production. We analyse where the Ohio entrants originated and conduct various analyses of how proximity to other tyre firms affected the longevity of tyre producers. We also examine how the heritage of the Ohio entrants influenced their origin and longevity. Our findings suggest that the Akron tyre cluster grew primarily through a process of organisational reproduction and heredity rather than through agglomeration economies. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

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  • 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.
  • Handle: RePEc:ecj:econjl:v:119:y:2009:i:537:p:705-733
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    1. 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.
    2. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
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