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Industrial Clustering and the Returns to Inventive Activity Canadian Biotechnology Firms, 1991-2000


  • Barak S. Aharonson
  • Joel A.C. Baum
  • Maryann P. Feldman


We examine how industrial clustering affects biotechnology firms’ innovativeness, contrasting similar firms not located in clusters or located in clusters that are or are not focused on the firm’s technological specialization. Using detailed firm level data, we find clustered firms are eight times more innovative than geographically remote firms, with largest effects for firms located in clusters strong in their own specialization. For firms located in a cluster strong in their specialization we also find that R&D productivity is enhanced by a firm’s own R&D alliances and also by the R&D alliances of other colocated firms.

Suggested Citation

  • Barak S. Aharonson & Joel A.C. Baum & Maryann P. Feldman, 2004. "Industrial Clustering and the Returns to Inventive Activity Canadian Biotechnology Firms, 1991-2000," DRUID Working Papers 04-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:04-03

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    References listed on IDEAS

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    15. 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.
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    Cited by:

    1. Feldman, Maryann & Martin, Roger, 2005. "Constructing jurisdictional advantage," Research Policy, Elsevier, vol. 34(8), pages 1235-1249, October.
    2. Gilsing, V.A. & Nooteboom, B., 2004. "Co-evolution in innovation systems: the case of pharmaceutical biotechnology," Working Papers 04.09, Eindhoven Center for Innovation Studies.
    3. repec:spr:scient:v:97:y:2013:i:1:d:10.1007_s11192-013-1069-6 is not listed on IDEAS
    4. repec:spr:scient:v:83:y:2010:i:2:d:10.1007_s11192-009-0102-2 is not listed on IDEAS
    5. repec:spr:scient:v:83:y:2010:i:2:d:10.1007_s11192-009-0097-8 is not listed on IDEAS
    6. repec:wsi:ijimxx:v:14:y:2010:i:02:n:s1363919610002635 is not listed on IDEAS
    7. repec:wsi:jikmxx:v:04:y:2005:i:01:n:s0219649205001006 is not listed on IDEAS

    More about this item


    Biotechnology; industrial clustering; knowledge spillovers; R&D productivity; strategic alliances;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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