IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/06-23.html
   My bibliography  Save this paper

On the Marshall - Jacobs Controversy It takes two to tango

Author

Listed:
  • Gerben van der Panne
  • Cees van Beers

Abstract

The literature is inconclusive as to whether Marshallian specialization or Jacobian diversification externalities favour regional innovativeness. The specialization argument poses that regional specialization towards a particular industry improves innovativeness in that industry. Regional specialization allows for knowledge to spill over among similar firms. By contrast, the diversification thesis asserts that knowledge spills over between firms in different industries, causing diversified production structures to be more innovative. Building on an original database, we address this controversy for the Netherlands. We thereby advance on the literature by providing a two-level approach, at the region’s and the firm’s level. At the regional level, we compare specialized with diversified regions on numbers of accommodated innovators. At the firm level, we establish causalities between externalities and degree of innovativeness. The results suggest Marshallian externalities: specialized regions accommodate increased numbers of innovating firms and, consistently, incumbent firms’ innovativeness increase with regional specialization. Once the product has been launched, innovators in diversified Jacobian regions prove more successful in commercial terms than innovators in specialized Marshallian regions.

Suggested Citation

  • Gerben van der Panne & Cees van Beers, 2006. "On the Marshall - Jacobs Controversy It takes two to tango," DRUID Working Papers 06-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:06-23
    as

    Download full text from publisher

    File URL: http://www3.druid.dk/wp/20060023.pdf
    Download Restriction: no

    Citations

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


    Cited by:

    1. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9865-7 is not listed on IDEAS
    2. Loredana Fattorini & Mahdi Ghodsi & Armando Rungi, 2018. "Cohesion Policy Meets Heterogeneous Firms," wiiw Working Papers 142, The Vienna Institute for International Economic Studies, wiiw.
    3. Roberto Ganau & Eleonora Di Maria, 2014. "Determinants of technological innovation in SMEs. Firm-level factors, agglomeration economies and the role of KIBS providers," ERSA conference papers ersa14p820, European Regional Science Association.
    4. repec:elg:eechap:14395_12 is not listed on IDEAS
    5. repec:spr:scient:v:94:y:2013:i:1:d:10.1007_s11192-012-0753-2 is not listed on IDEAS
    6. Antonelli, Cristiano, 2008. "Pecuniary Externalities: the Convergence of Directed Technological Change and the Emergence of Innovation Systems," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200807, University of Turin.
    7. Lucia Cusmano & Andrea Morrison & Enrico Pandolfo, 2015. "Spin-off and clustering: a return to the Marshallian district," Cambridge Journal of Economics, Oxford University Press, vol. 39(1), pages 49-66.
    8. Anne Otto & Dirk Fornahl, 2009. "Cohesion Policy:Methodology And Indicators Towards Common Approach," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(1), pages 1-35, JUNE.
    9. Frank Van Oort, 2013. "Agglomeration Economics Beyond the Specialisation-Diversity Controversy," Papers in Evolutionary Economic Geography (PEEG) 1313, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2013.
    10. Qi Guo & Canfei He, 2015. "Evolution of Production Space and Regional Industrial Structures in China," Papers in Evolutionary Economic Geography (PEEG) 1521, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    11. Benner, Maximilian, 2013. "From smart specialisation to smart experimentation: Towards a new theoretical framework for EU regional policy," MPRA Paper 51843, University Library of Munich, Germany.
    12. Cees Beers & Gerben Panne, 2011. "Geography, knowledge spillovers and small firms’ exports: an empirical examination for The Netherlands," Small Business Economics, Springer, vol. 37(3), pages 325-339, October.
    13. Otto, Anne & Fornahl, Dirk, 2008. "Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation," IAB Discussion Paper 200813, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Baltzopoulos, Apostolos, 2009. "The Firm and the Region as Breeding Grounds for Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 189, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    15. Irfan Kaygalak & Neil Reid, 2016. "Innovation and knowledge spillovers in Turkey: The role of geographic and organizational proximity," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(1-2), pages 45-60, March.
    16. Andrzej Cieślik & Mohammad Mahdi Ghodsi, 2014. "Regional knowledge spillovers in the European Economic Area: The case of three high-tech industries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    17. repec:spr:anresc:v:58:y:2017:i:3:d:10.1007_s00168-017-0807-8 is not listed on IDEAS
    18. Baltzopoulos, Apostolos, 2009. "Agglomeration Externalities and Entrepreneurship - micro-level evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation 190, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    19. Andrea Morrison & Ron Boschma, 2017. "The spatial evolution of the Italian motorcycle industry (1893-1993): KlepperÕs heritage theory revisited," Papers in Evolutionary Economic Geography (PEEG) 1707, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
    20. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    21. Matthias Bürger, 2011. "Dynamics of Collaborative Invention Tracking Growth of Cooperative and Total Patents in the Region," Jena Economic Research Papers 2011-045, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    Industrial clusters; innovation; knowledge externalities;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:aal:abbswp:06-23. 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: (Keld Laursen). General contact details of provider: http://www.druid.dk/ .

    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.