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The Dynamics of Agglomeration Externalities along the Life Cycle of Industries

Author

Listed:
  • Frank Neffke
  • Martin Henning
  • Ron Boschma
  • Karl-Johan Lundquist
  • Lars-Olof Olander

Abstract

Neffke F., Henning M., Boschma R., Lundquist K.-J. and Olander L.-O. The dynamics of agglomeration externalities along the life cycle of industries, Regional Studies. This paper investigates the changing roles of agglomeration externalities along the industry life cycle. It is argued that industries have different agglomeration needs in different stages of their life cycles because their mode of competition, innovation intensity, and learning opportunities change over time. For twelve Swedish manufacturing industries, it is determined for each year between 1974 and 2004 whether the industry is in a young, intermediate, or mature stage. Whereas Marshall-Arrow-Romer (MAR) externalities steadily increase with the maturity of industries, the effects of local diversity (Jacobs' externalities) are positive for young industries, but decline and even become negative for more mature industries. [image omitted] Neffke F., Henning M., Boschma R., Lundquist K.-J. et Olander L.-O. La dynamique des effets externes d'agglomeration tout au long du cycle de vie des industries, Regional Studies. Cet article cherche a examiner l'evolution du role des effets externes d'agglomeration tout au long du cycle de vie des industries. On soutient que les atouts de l'agglomeration varient suivant la phase du cycle de vie parce que le mode de competition, l'intensite de l'innovation, et les possiblites d'apprentissage des industries evoluent dans le temps. On determine pour douze industries suedoises et pour chaque annee de 1974 a 2004 si, oui ou non, une industrie est a un niveau naissant, intermediaire ou avance. Tandis que les effets externes Marshall-Arrow-Romer (MAR) augmentent regulierement au fur et a mesure du developpement des industries, les effets de la diversite locale (effets externes Jacobs) s'averent positifs pour les industries naissantes mais diminuent, voire s'averent negatifs, pour ce qui est des industries plus avancees. Cycle de vie des industries Agglomeration Effets externes Evolution Marshall-Arrow-Romer (MAR) Jacobs Neffke F., Henning M., Boschma R., Lundquist K.-J. und Olander L.-O. Die Dynamik von Agglomerationsexternalitaten wahrend des Lebenszyklus von Branchen, Regional Studies. In diesem Beitrag untersuchen wir die wechselnden Rollen von Agglomerationsexternalitaten im Laufe des Lebenszyklus von Branchen. Wir stellen die These auf, dass die Branchen in verschiedenen Phasen ihrer Lebenszyklen verschiedene Agglomerationsbedurfnisse aufweisen, da sich die Art ihres Wettbewerbs, die Intensitat der Innovationen und die Chancen zum Lernen im Laufe der Zeit verandern. Anhand von zwolf produzierenden Branchen Schwedens wird fur jedes Jahr von 1974 bis 2004 festgestellt, ob sich die Branchen jeweils in einem jungen, mittleren oder reifen Stadium befinden. Wahrend die Marshall-Arrow-Romer-(MAR)-Externalitaten mit zunehmender Reife der Branchen gleichmassig zunehmen, fallen die Auswirkungen der lokalen Diversitat (Jacobs-Externalitaten) fur junge Branchen positiv aus, nehmen dann aber fur reifere Branchen ab und werden schliesslich sogar negativ. Lebenszyklus von Branchen Agglomeration Externalitaten Evolution Marshall-Arrow-Romer (MAR) Jacobs Neffke F., Henning M., Boschma R., Lundquist K.-J. y Olander L.-O. Las dinamicas de los efectos externos de aglomeracion en el ciclo vital de las industrias, Regional Studies. En este articulo analizamos las funciones cambiantes de los efectos externos de aglomeracion en el ciclo vital de sectores industriales. Argumentamos que las industrias tienen diferentes necesidades de aglomeracion en distintas fases de sus ciclos vitales ya que su modo de competicion, intensidad de innovacion y oportunidades de aprendizaje evolucionan con el tiempo. En doce sectores industriales manufactureros de Suecia se determino para cada ano desde 1974 a 2004 si la industria estaba en una fase joven, intermedia o madura. Mientras que los efectos externos Marshall-Arrow-Romer (MAR) aumentan de forma constante con la madurez de las industrias, los efectos de la diversidad local (las externalidades de Jacob) son positivas en las industrias jovenes, no obstante para las industrias mas maduras los efectos entran en declive e incluso se vuelven negativos. Ciclo vital de las industrias Aglomeracion Efectos externos Evolucion Marshall-Arrow-Romer (MAR) Jacobs

Suggested Citation

  • Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
    • Handle: RePEc:taf:regstd:v:45:y:2011:i:1:p:49-65
    DOI: 10.1080/00343401003596307
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    References listed on IDEAS

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    1. Frank Neffke & Martin Svensson Henning, 2008. "Revealed Relatedness: Mapping Industry Space," DRUID Working Papers 08-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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