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A Spatial Interpretation of the Density Dependence Model in Industrial Demography

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  • Leo van Wissen

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Abstract

In this paper the density dependence model, which was developed in organizational ecology, is compared to the economic-geographical notion of agglomeration economies. There is a basic resemblance: both involve some form of positive feedback between size of the population and growth. The paper explores how the theoretical concepts compare to each other, and if an interdisciplinary cross- fertilization between both is fruitful. It is found that there are a number of important similarities in the underlying theories. These refer to the process of legitimation, which has some close similarities to concepts derived from theories of new industrial districts, such as social capital, institutional thickness, and innovative milieux. Differences remain important as well. For instance, the sociological interpretation of competition is not transferable into notions of agglomeration economies. An important conclusion is that agglomeration effects can and should be incorporated into the density dependence model.

Suggested Citation

  • Leo van Wissen, 2004. "A Spatial Interpretation of the Density Dependence Model in Industrial Demography," Small Business Economics, Springer, vol. 22(3_4), pages 253-264, April.
  • Handle: RePEc:kap:sbusec:v:22:y:2004:i:3_4:p:253-264
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    Cited by:

    1. Luciana Lazzeretti & Francesco Capone, 2017. "The transformation of the Prato industrial district: an organisational ecology analysis of the co-evolution of Italian and Chinese firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 135-158, January.
    2. Rik Wenting & Koen Frenken, 2011. "Firm entry and institutional lock-in: an organizational ecology analysis of the global fashion design industry," Industrial and Corporate Change, Oxford University Press, vol. 20(4), pages 1031-1048, August.
    3. Hellerstedt, Karin & Wennberg, Karl & Frederiksen, Lars, 2014. "University Knowledge Spillovers & Regional Start-up Rates: Supply and Demand Side Factors," Ratio Working Papers 230, The Ratio Institute.
    4. Nica, M., 2010. "Small Business Clusters in Oklahoma: MAR or Jacobs Effects?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).

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