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Do locational spillovers pay? empirical evidence from German IPO data

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  • David Audretsch
  • Erik Lehmann

Abstract

This study examines the impact that locational spillovers have on firm performance. On the basis of a uniquely created data set consisting of high-technology start-ups publicly listed in Germany, this paper tests the proposition of locational spillovers positively affecting firm performance, as measured by abnormally high profits on the stock market. The results provide evidence that geographic proximity and university spillovers are complementary determinants of firm performance. Although neither geographic proximity nor academic research spillovers alone can explain firm performance, a combination of both factors results in significant higher stock market performance. The results also show that academic spillovers are heterogeneous in their impact, depending on the type. In particular, spillovers from social sciences have a different impact on firm performance than do spillovers from natural sciences.

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  • David Audretsch & Erik Lehmann, 2006. "Do locational spillovers pay? empirical evidence from German IPO data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(1), pages 71-81.
    • Handle: RePEc:taf:ecinnt:v:15:y:2006:i:1:p:71-81
    DOI: 10.1080/1043859042000332187
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    Cited by:

    1. Guenter Lang, 2008. "Measuring the Returns of Research and Development: An Empirical Study of the German Manufacturing Sector over 45 Years," Working Papers 10, The German University in Cairo, Faculty of Management Technology.
    2. Lang, Guenter, 2009. "Measuring the returns of R&D--An empirical study of the German manufacturing sector over 45 years," Research Policy, Elsevier, vol. 38(9), pages 1438-1445, November.
    3. Hülsbeck, Marcel & Lehmann, Erik E., 2010. "The role of regional knowledge production in university technology transfer: Isolating coevolutionary effects," UO Working Papers 01-10, University of Augsburg, Chair of Management and Organization.
    4. Audretsch, David B. & Lehmann, Erik E., 2005. "Do University policies make a difference?," Research Policy, Elsevier, vol. 34(3), pages 343-347, April.
    5. David B. Audretsch & Lehmann Erik E., 2004. "Universitäten als regionale Förderer der Wirtschaft?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(03), pages 18-23, June.
    6. Cassia, Lucio & Colombelli, Alessandra & Paleari, Stefano, 2009. "Firms' growth: Does the innovation system matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 211-220, September.
    7. Fabio Bertoni & Massimo Colombo & Anita Quas, 2015. "The patterns of venture capital investment in Europe," Small Business Economics, Springer, vol. 45(3), pages 543-560, October.
    8. Tong Liu & Shiyou Qu & Christopher M. Scherpereel, 2020. "The Influence of the Role Positioning of Investment Institutions on the Value of Start-Up Enterprises from the Perspective of Network," Sustainability, MDPI, vol. 12(2), pages 1-19, January.
    9. 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.
    10. Manuela Presutti & Cristina Boari & Antonio Majocchi, 2013. "Inter-organizational geographical proximity and local start-ups' knowledge acquisition: a contingency approach," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(5-6), pages 446-467, June.
    11. Lalit Manral, 2015. "The demand-side dynamics of entrant heterogeneity," Journal of Evolutionary Economics, Springer, vol. 25(2), pages 401-445, April.
    12. Dennis Patrick Leyden, 2016. "Universities as partners in research joint ventures," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 449-462, December.
    13. Dahlke, Johannes & Beck, Mathias & Kinne, Jan & Lenz, David & Dehghan, Robert & Wörter, Martin & Ebersberger, Bernd, 2024. "Epidemic effects in the diffusion of emerging digital technologies: evidence from artificial intelligence adoption," Research Policy, Elsevier, vol. 53(2).

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    More about this item

    Keywords

    University spillover; Firm performance; University-firm collaboration;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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