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The effect of regional differences on the performance of software firms in the Netherlands

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  • Ron A. Boschma

    ()

  • Anet B.R. Weterings

    ()

Abstract

This paper aims to explore the effect of regional differences on the performance of software firms in the Netherlands. Inspired by evolutionary economics, we account for the impact of (1) co-location and sharing a local knowledge base; (2) pre-entry experience in the same or related industries; (3) being connected; and, (4) having organisational capabilities to cope with change. The outcomes of the regression analyses on data gathered among 265 software firms suggest that firms located in regions specialised in ICT have a higher innovative productivity. Spin-offs and firms with organisational capabilities also perform better, while network relationships do not affect the performance of software firms.

Suggested Citation

  • Ron A. Boschma & Anet B.R. Weterings, 2005. "The effect of regional differences on the performance of software firms in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0506, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2005.
  • Handle: RePEc:egu:wpaper:0506
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    File URL: http://econ.geo.uu.nl/peeg/peeg0506.pdf
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    References listed on IDEAS

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    Cited by:

    1. Rik Wenting & Oedzge Atzema & Koen Frenken, 2008. "Urban Amenities or Agglomeration Economies? Locational Behaviour and Entrepreneurial Success of Dutch Fashion Designers," Papers in Evolutionary Economic Geography (PEEG) 0803, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2008.
    2. Liargovas, Panagiotis & Daskalopoulou, Irene, 2011. "Capital allocation in the Greek regions," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 866-888.
    3. Dirk-Jan Koch & Ruerd Ruben, 2008. "Spatial Clustering Of NGOs: An Evolutionary Economic Geography Approach," Papers in Evolutionary Economic Geography (PEEG) 0814, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2008.
    4. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
    5. Heike Mayer, 2013. "Spinoff regions: entrepreneurial emergence and regional development in second-tier high-technology regions – observations from the Oregon and Idaho electronics sectors," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 8, pages 207-229 Edward Elgar Publishing.
    6. Degl’Innocenti, Marta & Matousek, Roman & Sevic, Zeljko & Tzeremes, Nickolaos G., 2017. "Bank efficiency and financial centres: Does geographical location matter?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 188-198.
    7. Christ, Julian P., 2009. "New Economic Geography reloaded: Localized knowledge spillovers and the geography of innovation," FZID Discussion Papers 01-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    8. Schimke, Antje & Teichert, Nina & Ott, Ingrid, 2012. "Impact of local knowledge endowment on employment growth in nanotechnology," Working Paper Series in Economics 38, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    9. Joris Knoben & L. A. G. (Leon) Oerlemans & R. P. J. H. (Roel) Rutten, 2008. "The Effects of Spatial Mobility on the Performance of Firms," Economic Geography, Clark University, vol. 84(2), pages 157-183, April.
    10. Lukas Lengauer & Franz Tödtling & Michaela Trippl, 2006. "Der Informations- und Kommunikationstechnologien-Sektor in Österreich: Struktur, Entwicklungsdynamik und räumliche Muster," SRE-Disc sre-disc-2006_06, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    11. Weterings, Anet & Koster, Sierdjan, 2007. "Inheriting knowledge and sustaining relationships: What stimulates the innovative performance of small software firms in the Netherlands?," Research Policy, Elsevier, vol. 36(3), pages 320-335, April.
    12. Oliver Farhauer & Alexandra Kröll, 2012. "Diversified specialisation—going one step beyond regional economics’ specialisation-diversification concept," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(1), pages 63-84, March.
    13. Michaela Trippl & Lukas Lengauer & Franz Tödtling, 2007. "Innovation und Wissensnetze im Wiener Informations- und Kommunikationtechnologiecluster," SRE-Disc sre-disc-2007_02, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    14. Sierdjan Koster, 2009. "Taking The First Hurdle In New Firm Formation. The Effects Of Industry-Specific Skills And Support On Survival During The Founding Process," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(1), pages 36-62, JUNE.
    15. Li, Xibao, 2015. "Specialization, institutions and innovation within China's regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 130-139.
    16. Basant, Rakesh & Chandra, Pankaj & Upadhyayula, Rajesh, 2011. "Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations," IIMA Working Papers WP2011-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    17. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).
    18. repec:bla:tvecsg:v:108:y:2017:i:2:p:205-219 is not listed on IDEAS
    19. repec:taf:regstd:v:51:y:2017:i:8:p:1179-1191 is not listed on IDEAS
    20. Max-Peter Menzel & Maryann P. Feldman & Tom Broekel, 2017. "Institutional change and network evolution: explorative and exploitative tie formations of co-inventors during the dot-com bubble in the Research Triangle region," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1179-1191, August.
    21. Tom Broekel & Ron Boschma, 2012. "Knowledge networks in the Dutch aviation industry: the proximity paradox," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 409-433, March.

    More about this item

    Keywords

    evolutionary economics; agglomeration economies; innovative productivity; software industry; spin-offs;

    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
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods

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