IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v8y1999i1-2p79-103.html
   My bibliography  Save this article

Firm Size And Capabilities, Regional Agglomeration, And The Adoption Of New Technology

Author

Listed:
  • Maryellen Kelley
  • Susan Helper

Abstract

The literature on agglomeration economies suggests that, in addition to firm-specific attributes, the local geographic context conditions the expected profitability of technology adoption. All rheories of technology diffusion assumc that inter-firm learning is the outcome of contact with prior adopters. Yet, with few exceptions, thc attributes of location that maximize the opportunities for learning (and hence, reduce thc costs of technology adoption for all firms in the same locale) have been given only cursory treatment. In this paper, we develop and test a model in which both firm-specific capabilities and placc-specific cxtcrnal economies affect the firm's decision to adopt a new technology. Our data colile from two national surveys conducted in 1987 and 1991. Because we have information on two different time periods, we are able to specify firm and place-specific conditions that precede the technology adoption decision. We find that localization (as measured by regional clustering of enterprises in related industries) and urbanizalion (as mcasured by the diversity of industries, and by the concentration of degree granting engineering institutions) provide knowledge spillovers that facilitate the adoption of new tcchnology by local establishments. Moreover, the impact of urbanization econonlies is size-related: The impact of a diverse region on adoption is evcn greater for small enterprises than for large ones.

Suggested Citation

  • Maryellen Kelley & Susan Helper, 1999. "Firm Size And Capabilities, Regional Agglomeration, And The Adoption Of New Technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 79-103.
  • Handle: RePEc:taf:ecinnt:v:8:y:1999:i:1-2:p:79-103 DOI: 10.1080/10438599900000005
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438599900000005
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Gourieroux Christian & Monfort Alain & Trognon A, 1981. "Pseudo maximum likelihood methods : theory," CEPREMAP Working Papers (Couverture Orange) 8129, CEPREMAP.
    3. Lynne G. Zucker & Michael R. Darby & Marilynn B. Brewer, 1994. "Intellectual Capital and the Birth of U.S. Biotechnology Enterprises," NBER Working Papers 4653, National Bureau of Economic Research, Inc.
    4. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-720, May.
    5. Schrader, Stephan, 1991. "Informal technology transfer between firms: Cooperation through information trading," Research Policy, Elsevier, pages 153-170.
    6. Kiminori Matsuyama & Takaaki Takahashi, 1998. "Self-Defeating Regional Concentration," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 211-234.
    7. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    8. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
    9. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, pages 577-598.
    10. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    11. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    12. Wooldridge, Jeffrey M., 1990. "A Unified Approach to Robust, Regression-Based Specification Tests," Econometric Theory, Cambridge University Press, vol. 6(01), pages 17-43, March.
    13. Oster, Sharon, 1979. "Industrial Search for New Locations: An Empirical Analysis," The Review of Economics and Statistics, MIT Press, pages 288-292.
    14. Henderson I. Vernon, 1994. "Where Does an Industry Locate?," Journal of Urban Economics, Elsevier, vol. 35(1), pages 83-104, January.
    15. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Theory," Econometrica, Econometric Society, vol. 52(3), pages 681-700, May.
    16. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    17. 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, pages 440-449.
    18. repec:hoo:wpaper:e-94-11 is not listed on IDEAS
    19. Jeffrey M. Wooldridge, 1987. "Specification Testing and Quasi-Maximum Likelihood Estimation," Working papers 479, Massachusetts Institute of Technology (MIT), Department of Economics.
    20. Wooldridge, Jeffrey M., 1991. "Specification testing and quasi-maximum- likelihood estimation," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 29-55.
    21. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, pages 1454-1477.
    2. Suzanne Kok, 2013. "Returns to Communication in Specialised and Diversified US Cities," CPB Discussion Paper 236, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, pages 303-364.
    4. Martin Andersson & Lina Bjerke & Charlie Karlsson, 2014. "Imports and regional development," Chapters,in: Knowledge, Innovation and Space, chapter 4, pages 80-102 Edward Elgar Publishing.
    5. Olof Ejermo, 2002. "Knowledge Production in Swedish Functional Regions 1993-1999," KITeS Working Papers 140, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Feb 2003.
    6. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, pages 303-364.
    7. Klimenko, Mikhail M., 2004. "Competition, matching, and geographical clustering at early stages of the industry life cycle," Journal of Economics and Business, Elsevier, pages 177-195.
    8. Wiig Aslesen, Heidi, 2000. "Innovation Performance In The Capital Region Of Norway. Potentials For Improvement," ERSA conference papers ersa00p388, European Regional Science Association.
    9. Diego Puga, 2017. "The changing distribution of firms and workers across cities," Development Working Papers 418, Centro Studi Luca d'Agliano, University of Milano, revised 21 Feb 2017.
    10. Olof Ejermo, 2005. "Technological Diversity and Jacobs' Externality Hypothesis Revisited," Growth and Change, Wiley Blackwell, vol. 36(2), pages 167-195.
    11. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, pages 1454-1477.
    12. Puga, Diego, 2008. "Agglomeration and cross-border infrastructure," EIB Papers 9/2008, European Investment Bank, Economics Department.
    13. Adelheid Holl & Rafael Pardo & Ruth Rama, 2013. "Spatial patterns of adoption of just-in-time manufacturing," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 51-67, March.
    14. Neil Lee & Max Nathan, 2011. "Does Cultural Diversity Help Innovation in Cities: Evidence from London Firms," SERC Discussion Papers 0069, Spatial Economics Research Centre, LSE.
    15. Steingraber, Ronivaldo & Gonçalves, Flávio, 2011. "Productivity differences in Brazilian manufacturing firms, by industrial sector: school bullying and academic achievement," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    16. Burger, M.J. & van Oort, F.G. & Raspe, O., 2010. "Agglomeration and New Establishment Survival: A Mixed Hierarchical and Cross-Classified Model," ERIM Report Series Research in Management ERS-2010-018-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Cristiano Antonelli, 2000. "Collective Knowledge Communication and Innovation: The Evidence of Technological Districts," Regional Studies, Taylor & Francis Journals, pages 535-547.
    18. Chris Forman & Avi Goldfarb & Shane Greenstein, 2005. "Technology Adoption In and Out of Major Urban Areas: When Do Internal Firm Resources Matter Most?," NBER Working Papers 11642, National Bureau of Economic Research, Inc.
    19. No, Angela, 2008. "Cities and Growth: Knowledge Spillovers in the Adoption of Advanced Manufacturing Technologies," The Canadian Economy in Transition 2008018e, Statistics Canada, Economic Analysis Division.
    20. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Keywords

    Agglomeration economies; Technology adoption; Knowledge spillovers; Small business; Regional economies; Survey research JEL Classification: 030; R11;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:8:y:1999:i:1-2:p:79-103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.