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Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany

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  • Werner Bonte

Abstract

This article investigates the impact of various agglomeration forces on employment and innovation for a sample of aeronautical cluster firms in Northern Germany and a control group of geographically dispersed aeronautical firms in other German regions. The findings suggest that employment growth is positively affected by labor market pooling but this effect is not cluster-specific. The firms' probability of innovating is positively influenced by knowledge flows from proximate scientific institutions and public information sources as well as demanding local customers. However, only the effect of demanding customers is cluster-specific.

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  • Werner Bonte, 2004. "Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(3), pages 259-278.
  • Handle: RePEc:taf:ijecbs:v:11:y:2004:i:3:p:259-278
    DOI: 10.1080/1357151042000286393
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    References listed on IDEAS

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    1. Oerlemans, Leon A.G. & Meeus, Marius T.H., 2002. "Spatial embeddedness and firm performance: an empirical exploration of the effects of proximity on innovative and economic performance," ERSA conference papers ersa02p054, European Regional Science Association.
    2. Guido De Blasio & Sabrina Di Addario, 2002. "Labor market pooling: evidence from Italian industrial districts," Temi di discussione (Economic working papers) 453, Bank of Italy, Economic Research and International Relations Area.
    3. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    4. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411.
    5. 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, vol. 108(3), pages 577-598.
    6. repec:fth:harver:1473 is not listed on IDEAS
    7. Catherine Beaudry, 2001. "Entry, Growth and Patenting in Industrial Clusters: A Study of the Aerospace Industry in the UK," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 405-436.
    8. Swann, Peter & Prevezer, Martha, 1996. "A comparison of the dynamics of industrial clustering in computing and biotechnology," Research Policy, Elsevier, vol. 25(7), pages 1139-1157, October.
    9. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
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    Cited by:

    1. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
    2. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    3. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    4. Ali, Hoda Abd El Hamid, 2011. "Universities, Industrial Clusters, and Economic Development in Egypt," MPRA Paper 60111, University Library of Munich, Germany, revised 2012.
    5. Doran, Justin & Jordan, Declan, 2012. "Cross Sectoral Differences in Drivers of Innovation," MPRA Paper 44470, University Library of Munich, Germany.
    6. Abdurrahman Mete Yazan, 2013. "Do Social Factors Matter for Innovation, and Do They Influence Innovation in Aeronautics Industry?," IET Working Papers Series 05/2013, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology.
    7. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
    8. Thomas Brenner & Andreas Gildner, 2006. "Long-term Implications of Local Industrial Clusters," Papers on Economics and Evolution 2006-08, Philipps University Marburg, Department of Geography.

    More about this item

    Keywords

    Industrial Clusters; Innovation; Firm Performance; Aerospace; JEL Classifications: L62; O30; R12;

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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