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

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  • Guido Buenstorf

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  • Dirk Fornahl

Abstract

This article studies entrepreneurial activities emerging out of one of Germany’s most prominent dot.com 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

Suggested Citation

  • Guido Buenstorf & Dirk Fornahl, 2006. "B2C - Bubble to Cluster: The Dot.com Boom, Spin-off Entrepreneurship, and Regional Industry Evolution," Papers on Economics and Evolution 2006-20, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:esi:evopap:2006-20
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    References listed on IDEAS

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    1. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    2. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, April.
    3. 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.
    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. Guido Buenstorf, 2007. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(3), pages 179-202, May.
    6. Pier Paolo Patrucco, 2005. "The emergence of technology systems: knowledge production and distribution in the case of the Emilian plastics district," Cambridge Journal of Economics, Oxford University Press, vol. 29(1), pages 37-56, January.
    7. 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.
    8. Olav Sorenson, 2003. "Social networks and industrial geography," Journal of Evolutionary Economics, Springer, vol. 13(5), pages 513-527, December.
    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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    Cited by:

    1. Rao, T.V.S. Ramamohan, 2011. "CES as an Organizational Production Function," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 46(1), pages 69-81.
    2. S. Bhaduri & H. Worch, 2008. "Past Experience, Cognitive Frames, and Entrepreneurship: Some Econometric Evidence from the Indian Pharmaceutical Industry," Papers on Economics and Evolution 2008-04, Philipps University Marburg, Department of Geography.
    3. Guido Buenstorf, 2009. "Opportunity spin-offs and necessity spin-offs," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 1(1), pages 22-40.
    4. Dirk Fornahl & Robert Hassink & Claudia Klaerding & Ivo Mossig & Heike Schröder, 2011. "From the Old Path of Shipbuilding onto the New Path of Offshore Wind Energy? The Case of Northern Germany," European Planning Studies, Taylor & Francis Journals, vol. 20(5), pages 835-855, September.

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