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Firm Interactions and Potential Ecosystems: A Bottom-Up Approach to Territorial Network Analysis

Author

Listed:
  • Zoltan Elekes
  • Sandor Juhasz
  • Gergely Magyar
  • Balazs Lengyel
  • Gergo Toth

Abstract

Regional industry clusters enhance firm performance, yet the geography of firm-to-firm transactions underlying this advantage remains unclear. Using nationwide supplier-buyer and labour-flow networks constructed from Hungarian administrative data, we examine how the spatial reach of cluster and non-cluster firms’ supplier, customer, and labour connections relates to firm performance. We find that greater geographic reach in both networks is associated with better firm performance. Among cluster firms, better-performing firms reach more distant customers while drawing from more geographically proximate labour markets. Our findings reveal that the spatial structure of inter-firm networks is a key source of the cluster premium.

Suggested Citation

  • Zoltan Elekes & Sandor Juhasz & Gergely Magyar & Balazs Lengyel & Gergo Toth, 2026. "Firm Interactions and Potential Ecosystems: A Bottom-Up Approach to Territorial Network Analysis," Papers in Evolutionary Economic Geography (PEEG) 2613, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2026.
    • Handle: RePEc:egu:wpaper:2613
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    File URL: http://econ.geo.uu.nl/peeg/peeg2613.pdf
    File Function: Version August 2026
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