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Co-agglomeration of Knowledge-Intensive Business Services and Multinational Enterprises

  • Wouter Jacobs
  • Hans R.A. Koster
  • Frank van Oort

It has been argued that the relationship between knowledge intensive business services (KIBS) and multi-national enterprises (MNEs) within the regional economy is advantageous for urban and regional dynamics. It is likely that KIBS aim to locate proximate to (internationally operating) MNEs because of agglomeration externalities. The impact of MNEs on the birth of KIBS has rarely been examined, and the research on the new formation of KIBS has mainly adopted a case study approach, thus limiting the opportunity for generalisation. We have taken a more quantitative approach using a continuous space framework to test whether proximity is important for the co-location of KIBS and MNEs in the metropolitan area of Amsterdam in the Netherlands. Our results, controlled for other location factors, indicate that KIBS are co-agglomerated with MNEs and that the presence of a MNE significantly influences the birth of KIBS nearby, but the effect on such start-ups is considerably smaller than the positive effect of the presence of already established KIBS. We discuss the implications for urban and regional development strategies and policy initiatives.

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File URL: http://econ.geo.uu.nl/peeg/peeg1225.pdf
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Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1225.

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Length: 41 pages
Date of creation: Dec 2012
Date of revision: Dec 2012
Handle: RePEc:egu:wpaper:1225
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