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The impact of aging and technological relatedness on agglomeration externalities: a survival analysis

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  • Frank M.H. Neffke
  • Martin Henning
  • Ron Boschma

Abstract

We study localization, urbanization, and Jacobs’ externality effects on plant survival in Sweden (1970-2004). We focus on two questions: (1) do agglomeration externalities change with the age of plants? (2) using new information about the relatedness among industries, what is the role of technological relatedness among local industries? We find that agglomeration externalities affect survival chances of plants. This effect, however, differs between corporate and non-affiliated plants. Furthermore, we find that Jacobs’ externalities benefit only young plants, whereas urbanization externalities harm plants at all ages. Localization externalities are insignificant, while the presence of related industries substantially increases survival rates.
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  • Frank M.H. Neffke & Martin Henning & Ron Boschma, 2012. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 485-517, March.
  • Handle: RePEc:oup:jecgeo:v:12:y:2012:i:2:p:485-517
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    Cited by:

    1. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    2. repec:bla:tvecsg:v:108:y:2017:i:4:p:488-502 is not listed on IDEAS
    3. Canfei He & Qi Guo & David Rigby, 2015. "Industry Relatedness, Agglomeration Externalities and Firm Survival in China," Papers in Evolutionary Economic Geography (PEEG) 1528, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2015.
    4. repec:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0778-1 is not listed on IDEAS
    5. Duschl Matthias & Brenner Thomas & Schimke Antje & Luxen Dennis, 2014. "Firm Growth and the Spatial Impact of Geolocated External Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 234-256, April.
    6. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    7. Zsolt Csafordi & Laszlo Lorincz & Balazs Lengyel & Karoly Miklos Kiss, 2016. "Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness," IEHAS Discussion Papers 1610, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    8. Lisa Östbring & Rikard Eriksson & Urban Lindgren, 2015. "Relatedness through experience: On the importance of collected worker experiences for plant performance," Papers in Evolutionary Economic Geography (PEEG) 1530, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2015.
    9. Sam Tavassoli & Viroj Jienwatcharamongkhol, 2016. "Survival of entrepreneurial firms: the role of agglomeration externalities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(9-10), pages 746-767, October.
    10. repec:bla:tvecsg:v:108:y:2017:i:5:p:554-570 is not listed on IDEAS
    11. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    12. Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    13. Rikard Eriksson & Martin Henning & Anne Otto, 2014. "Regional and industrial mobility of workers leaving mature industries. A study of individuals who exit the Swedish shipbuilding industry 1970-2000," Papers in Evolutionary Economic Geography (PEEG) 1415, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2014.
    14. 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.
    15. Frank Neffke & Matté Hartog & Ron Boschma & Martin Henning, 2014. "Agents of structural change. The role of firms and entrepreneurs in regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1410, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2014.
    16. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "Natural Disasters, Industrial Clusters and Manufacturing Plant Survival," Discussion papers 15008, Research Institute of Economy, Trade and Industry (RIETI).
    17. Gerard Brady & Eleanor Doyle & Lisa Noonan, 2013. "Trade Sophistication Indicators: Balancing Diversity and Specialization," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(4), pages 425-438, November.
    18. Rune Dahl Fitjar & Bram Timmermans, 2017. "Knowledge bases and relatedness: A study of labour mobility in Norwegian regions," Papers in Evolutionary Economic Geography (PEEG) 1712, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2017.
    19. repec:kap:iaecre:v:19:y:2013:i:4:p:425-438 is not listed on IDEAS
    20. Filippo Randelli & Giorgio Ricchiuti, 2015. "The Survival of Tuscan Firms," Working Papers - Economics wp2015_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    21. Timmermans, Bram & Fitjar, Rune Dahl, 2015. "Skill Relatedness in Norway by Bram Timmermans and Rune Dahl Fitjar," UiS Working Papers in Economics and Finance 2015/20, University of Stavanger.
    22. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Eric Strobl, 2014. "Natural Disasters and the Birth, Life and Death of Plants: The Case of the Kobe Earthquake," Working Papers 2014-114, Department of Research, Ipag Business School.
    23. Frank Neffke & Martin Henning, 2011. "Inter-industry linkages in local economies," ERSA conference papers ersa11p1075, European Regional Science Association.

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