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Innovation and location in German knowledge intensive business service firms

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  • Brunow, Stephan

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Hammer, Andrea
  • Mc Cann, Philip

Abstract

"Knowledge Intensive Business Services (KIBS) are widely perceived as being important drivers of technological progress and innovation. KIBS are generally understood as depending, driving and thriving on knowledge exchanges and therefore, geographical proximity to markets, customers and suppliers would be expected to be a critical factor in their performance. This paper investigates how the innovation performance and processes of KIBS firms are related to their distance from the nearest city and also to the size of the nearest city. For this purpose we make use of detailed firm level data and consider Germany as a research field. While most current evidence on this topic emerges from Canada, we complements and add to this existing literature on the geography of KIBS by examining these issues in the German spatial setting which largely conforms to a textbook type of spatial urban hierarchy. Our probit results indeed find that there are very strong distance decay and city size effects, and these also vary according to the innovation type." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Brunow, Stephan & Hammer, Andrea & Mc Cann, Philip, 2017. "Innovation and location in German knowledge intensive business service firms," IAB Discussion Paper 201722, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201722
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    File URL: http://doku.iab.de/discussionpapers/2017/dp2217.pdf
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    References listed on IDEAS

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    1. Antonietti, Roberto & Cainelli, Giulio & Lupi, Claudio, 2013. "Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan," Economics Letters, Elsevier, vol. 118(2), pages 360-363.
    2. Neil Lee & Andrés Rodríguez-Pose, 2014. "Creativity, cities, and innovation," Environment and Planning A, Pion Ltd, London, vol. 46(5), pages 1139-1159, May.
    3. Mario Polese & Richard Shearmur, 2006. "Growth and Location of Economic Activity: The Spatial Dynamics of Industries in Canada 1971-2001," Growth and Change, Wiley Blackwell, vol. 37(3), pages 362-395.
    4. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    5. Fischer, Gabriele & Janik, Florian & Müller, Dana & Schmucker, Alexandra, 2008. "The IAB establishment panel : from sample to survey to projection," FDZ Methodenreport 200801_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Brunow, Stephan & Blien, Uwe, 2015. "Agglomeration effects on labor productivity: An assessment with microdata," REGION, European Regional Science Association, vol. 2, pages 33-53.
    7. Philip McCann, 2007. "Sketching Out a Model of Innovation, Face-to-face Interaction and Economic Geography," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(2), pages 117-134.
    8. Mark Freel, 2006. "Patterns of Technological Innovation in Knowledge-Intensive Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 13(3), pages 335-358.
    9. David Doloreux & Richard Shearmur, 2012. "Collaboration, information and the geography of innovation in knowledge intensive business services," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 79-105, January.
    10. Johan Klaesson & Therese Norman, 2015. "Market potential and the employment growth of knowledge-intensive services: comparing different geographical resolutions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 157-185, October.
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    More about this item

    Keywords

    Innovation; unternehmensbezogene Dienstleistungen; Wissensarbeit; regionale Faktoren; Stadt-Umland-Beziehungen;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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