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

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  • Guido Buenstorf

    ()

  • Matthias Geissler

    ()

Abstract

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.

Suggested Citation

  • Guido Buenstorf & Matthias Geissler, 2008. "The Origins of Entrants and the Geography of the German Laser Industry," Papers on Economics and Evolution 2008-14, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:esi:evopap:2008-14
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    References listed on IDEAS

    as
    1. 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.
    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. 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.
    4. Guido Buenstorf & Christina Guenther, 2007. "No Place like Home? Location choice and firm survival after forced relocation in the German machine tool industry," DRUID Working Papers 07-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    5. 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.
    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. 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. 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 440-449, August.
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    Cited by:

    1. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    2. Luis F. Medrano E., 2012. "Patent Citations, University Inventor Patents, and Survival in the German Laser Source Industry (1960-2005)," Jena Economic Research Papers 2012-009, Friedrich-Schiller-University Jena.
    3. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press, vol. 24(4), pages 859-873.
    4. Canfei He & Rudai Yang, 2016. "Determinants of Firm Failure: Empirical Evidence from China," Growth and Change, Wiley Blackwell, vol. 47(1), pages 72-92, March.
    5. Guido Bünstorf & Michael Fritsch & Luis F. Medrano, 2010. "Regional Knowledge and the Emergence of an Industry: Laser Systems Production in West Germany, 1975-2005," Jena Economic Research Papers 2010-079, Friedrich-Schiller-University Jena.
    6. Blankenberg, Ann-Kathrin & Buenstorf, Guido, 2016. "Regional co-evolution of firm population, innovation and public research? Evidence from the West German laser industry," Research Policy, Elsevier, vol. 45(4), pages 857-868.
    7. Koen Frenken & Elena Cefis & Erik Stam, 2015. "Industrial Dynamics and Clusters: A Survey," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 10-27, January.
    8. repec:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9508-1 is not listed on IDEAS

    More about this item

    Keywords

    Industry clusters; agglomeration economies; public research; entry; heritage Length 29 pages;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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