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The Origins of Entrants and the Geography of the German Laser Industry

  • Guido Buenstorf


  • Matthias Geissler


Entry into an industry often clusters in regions where the industry is already concentrated, which is suggestive of agglomeration economies. Regional public research activities may exert another attracting force on entrants into science-based industries. Empirically these proximity effects are confounded by other influences on where entrants originate and locate. This paper begins to disentangle the effects of agglomeration, public research, and the supply of capable entrants for the German laser industry. Our findings indicate that the industry’s geography was shaped by the local availability of potential entrants rather than localization economies. The impact of public research increased over time.

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Paper provided by Philipps University Marburg, Department of Geography in its series Papers on Economics and Evolution with number 2008-14.

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Date of creation: Dec 2008
Date of revision:
Handle: RePEc:esi:evopap:2008-14
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  1. Blind, Knut & Grupp, Hariolf, 1999. "Interdependencies between the science and technology infrastructure and innovation activities in German regions: empirical findings and policy consequences," Research Policy, Elsevier, vol. 28(5), pages 451-468, June.
  2. Guido Buenstorf & Christina Guenther, 2007. "No place like home? Location choice and firm survival after forced relocation in the German machine tool industry," Jena Economic Research Papers 2007-053, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. 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.
  4. Guido Buenstorf, 2007. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Review of Industrial Organization, Springer, vol. 30(3), pages 179-202, May.
  5. Audretsch, David B. & Lehmann, Erik E. & Warning, Susanne, 2005. "University spillovers and new firm location," Research Policy, Elsevier, vol. 34(7), pages 1113-1122, September.
  6. Belleflamme, Paul & Picard, Pierre & Thisse, Jacques-Francois, 2000. "An Economic Theory of Regional Clusters," Journal of Urban Economics, Elsevier, vol. 48(1), pages 158-184, July.
  7. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August.
  8. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, 04.
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