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B2C - Bubble to Cluster: The Boom, Spin-off Entrepreneurship, and Regional Industry Evolution

  • Guido Buenstorf


  • Dirk Fornahl

This article studies entrepreneurial activities emerging out of one of Germany’s most prominent firms: Intershop, a maker of e-commerce software. We show that Intershop spawned at least 30 spin-offs. The majority entered locally, giving rise to a small but growing software cluster and counteracting the job losses accompanying the parent firm’s drastic downsizing after 2000. We trace the knowledge transfer from Intershop to the spin-offs and relate it to recent theorizing on the spin-off process as well as spin-off-based cluster formation. The Intershop case suggests that temporarily successful dot.coms could exert lasting effects on regional development. Length 30 pages

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Paper provided by Philipps University Marburg, Department of Geography in its series Papers on Economics and Evolution with number 2006-20.

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Date of creation: Dec 2006
Date of revision:
Handle: RePEc:esi:evopap:2006-20
Contact details of provider: Postal: Deutschhausstrasse 10, 35032 Marburg
Phone: 064212824257
Fax: 064212828950
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  1. Guido Buenstorf & Steven Klepper, 2005. "Heritage and Agglomeration: The Akron Tire Cluster Revisited," Papers on Economics and Evolution 2005-08, Philipps University Marburg, Department of Geography.
  2. Patrucco, Pier Paolo, 2002. "The Emergence of Technology Systems: Knowledge Production and Distribution in the Case of the Emilian Plastics District," 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 200206, University of Turin.
  3. S. Klepper & S. Sleeper, 2002. "Entry by Spinoffs," Papers on Economics and Evolution 2002-07, Philipps University Marburg, Department of Geography.
  4. Mia Gray & Elyse Golob & Ann Markusen, 1996. "Big Firms, Long Arms, Wide Shoulders: The 'Hub-and-Spoke' Industrial District in the Seattle Region," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 651-666.
  5. Olav Sorenson, 2003. "Social networks and industrial geography," Journal of Evolutionary Economics, Springer, vol. 13(5), pages 513-527, December.
  6. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  7. Guido Buenstorf, 2006. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Papers on Economics and Evolution 2005-20, Philipps University Marburg, Department of Geography.
  8. Buenstorf, Guido & Klepper, Steven, 2010. "Why does entry cluster geographically? Evidence from the US tire industry," Journal of Urban Economics, Elsevier, vol. 68(2), pages 103-114, September.
  9. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 645-666, August.
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