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State-Level Locational Determinants of Biotechnology Firms

Author

Listed:
  • Stephan J. Goetz

    (University of Kentucky)

  • R. Shannon Morgan

    (University of Kentucky)

Abstract

The biotechnology industry has experienced remarkable growth since its inception, and growth prospects are strong for the remainder of the decade. In this article, the authors develop a formal model to discern factors affecting the location of biotechnology firms. The number of biotechnology firms per million residents in 1990, in each of the 50 states, is used as the dependent variable. Explanatory variables include traditional business-climate variables thought to influence firm location, as well as a set of variables hypothesized to specifically affect location in the biotechnology industry. In the estimation procedure, the authors separate variables that (a) affect the probability that a state has a biotechnology industry from those that (b) affect the number of biotechnology firms in a state, conditional on the state having such an industry.

Suggested Citation

  • Stephan J. Goetz & R. Shannon Morgan, 1995. "State-Level Locational Determinants of Biotechnology Firms," Economic Development Quarterly, , vol. 9(2), pages 174-184, May.
  • Handle: RePEc:sae:ecdequ:v:9:y:1995:i:2:p:174-184
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    References listed on IDEAS

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    1. George I. Treyz & Dan S. Rickman & Gang Shao, 1991. "The REMI Economic-Demographic Forecasting and Simulation Model," International Regional Science Review, , vol. 14(3), pages 221-253, December.
    2. Greenwood, Michael J., 1981. "Migration and Economic Growth in the United States," Elsevier Monographs, Elsevier, edition 1, number 9780123006509 edited by Mills, Edwin S..
    3. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    4. Knapp, Thomas A. & Graves, Philip E., 1989. "On the role of amenities in models of migration and regional development," MPRA Paper 19914, University Library of Munich, Germany.
    5. Greenwood, Michael J & Hunt, Gary L, 1984. "Migration and Interregional Employment Redistribution in the United States," American Economic Review, American Economic Association, vol. 74(5), pages 957-969, December.
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    Cited by:

    1. Kolympiris, Christos & Kalaitzandonakes, Nicholas & Miller, Douglas, 2014. "Public funds and local biotechnology firm creation," Research Policy, Elsevier, vol. 43(1), pages 121-137.
    2. Shelley M. Kimelberg & Elizabeth Williams, 2013. "Evaluating the Importance of Business Location Factors: The Influence of Facility Type," Growth and Change, Wiley Blackwell, vol. 44(1), pages 92-117, March.
    3. Charisia Vlachou & Olga Iakovidou, 2015. "The Evolution Of Studies On Business Location Factors," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-23, December.
    4. Sambidi, Pramod R. & Harrison, R. Wes, 2006. "Spatial Clustering of the U.S. Biotech Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21360, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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