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

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

Abstract

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.

Suggested Citation

  • Wouter Jacobs & Hans R.A. Koster & Frank van Oort, 2012. "Co-agglomeration of Knowledge-Intensive Business Services and Multinational Enterprises," Papers in Evolutionary Economic Geography (PEEG) 1225, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2012.
  • Handle: RePEc:egu:wpaper:1225
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    1. repec:spr:jknowl:v:8:y:2017:i:2:d:10.1007_s13132-015-0260-9 is not listed on IDEAS
    2. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2016. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Tinbergen Institute Discussion Papers 16-078/VII, Tinbergen Institute.
    3. Thomas Brenner & Marco Capasso & Matthias Duschl & Koen Frenken & Tania Treibich, 2015. "Causal Relations between Knowledge-Intensive Business Services and Regional Employment Growth," Working Papers on Innovation and Space 2015-04, Philipps University Marburg, Department of Geography.
    4. Koster, Hans R.A. & van Ommeren, Jos & Rietveld, Piet, 2014. "Estimation of semiparametric sorting models: Explaining geographical concentration of business services," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 14-28.
    5. Elche,Dioni & Consoli, Davide & Sánchez-Barrioluengo, Mabel, 2017. "From brawn to brains: manufacturing-KIBS interdependency," INGENIO (CSIC-UPV) Working Paper Series 201701, INGENIO (CSIC-UPV).

    More about this item

    Keywords

    knowledge intensive business services; multi-national enterprises; start-ups; point pattern methodology; Amsterdam.;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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