IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/10802.html
   My bibliography  Save this paper

Jurisdictional Advantage

Author

Listed:
  • Maryann Feldman
  • Roger Martin

Abstract

Our objective in this paper is to define jurisdictional advantage, the recognition that location is critical to firms' innovative success and that every location has unique assets that are not easily replicated. The purpose is to be normative and policy oriented. Drawing from the well-developed literature on corporate strategy, we consider analogies to cities in their search for competitive advantage. In contrast to the more passive term locational advantage, our use of the term jurisdiction denotes geographically-defined legal and political decision-making authority and coordination. Thus, jurisdictions may be constructed and managed to promote a coherent activity set. We review recent advances in our understanding of patterns of urban specialization and the composition of activities within cities, which suggest strategies that may generate economic growth as well as those strategies to avoid. This paper then considers the role of firms and their responsibility to jurisdictions in light of the net benefits received from place-specific externalities, and concludes by considering the challenges to implementing jurisdictional advantage.

Suggested Citation

  • Maryann Feldman & Roger Martin, 2004. "Jurisdictional Advantage," NBER Working Papers 10802, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:10802
    Note: PR
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w10802.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    2. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, vol. 91(5), pages 1454-1477, December.
    3. Papke, Leslie E., 1991. "Interstate business tax differentials and new firm location : Evidence from panel data," Journal of Public Economics, Elsevier, vol. 45(1), pages 47-68, June.
    4. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, August.
    5. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    6. Gary P. Pisano, 1994. "Knowledge, Integration, and the Locus of Learning: An Empirical Analysis of Process Development," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 85-100, December.
    7. Joseph Cortright, 2002. "The Economic Importance of Being Different: Regional Variations in Tastes, Increasing Returns, and the Dynamics of Development," Economic Development Quarterly, , vol. 16(1), pages 3-16, February.
    8. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    9. Kenney, Martin & von Burg, Urs, 1999. "Technology, Entrepreneurship and Path Dependence: Industrial Clustering in Silicon Valley and Route 128," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(1), pages 67-103, March.
    10. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    11. Henderson, Vernon, 1997. "Externalities and Industrial Development," Journal of Urban Economics, Elsevier, vol. 42(3), pages 449-470, November.
    12. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 645-666, August.
    13. Feldman, Maryann P, 2001. "The Entrepreneurial Event Revisited: Firm Formation in a Regional Context," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 861-891, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank.
    2. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    3. Pedro Valadas Monteiro & Teresa de Noronha & Paulo Neto, 2012. "The Idiosyncratic Nature Of Maritime Clusters:Considerations For Their Possible Differentiation," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 7-38.
    4. Simona Iammarino & Cecilia Jona-Lasini & Susanna Mantegazza, 2004. "Labour productivity, ICT and regions: The revival of Italian “dualism”?," SPRU Working Paper Series 127, SPRU - Science Policy Research Unit, University of Sussex Business School.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maryann Feldman & Roger Martin, 2005. "Jurisdictional Advantage," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 57-86, National Bureau of Economic Research, Inc.
    2. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2011. "The identification of agglomeration economies," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 253-266, March.
    3. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    4. Feldman, Maryann & Martin, Roger, 2005. "Constructing jurisdictional advantage," Research Policy, Elsevier, vol. 34(8), pages 1235-1249, October.
    5. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    6. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
    7. Shihe Fu & Stephen L. Ross, 2013. "Wage Premia in Employment Clusters: How Important Is Worker Heterogeneity?," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 271-304.
    8. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    9. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    10. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.
    11. 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 and the Associazione ICC, vol. 24(4), pages 859-873.
    12. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
    13. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    14. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, vol. 91(5), pages 1454-1477, December.
    15. William R. Kerr & Frederic Robert-Nicoud, 2020. "Tech Clusters," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 50-76, Summer.
    16. Baltzopoulos, Apostolos & Braunerhjelm, Pontus & Tikoudis, Ioannis, 2012. "Spin-off: Individual, Firm, Industry and Regional Determinants," Working Paper Series in Economics and Institutions of Innovation 265, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    17. van Oort, F.G. & Stam, F.C., 2006. "Agglomeration Economies and Entrepreneurship in the ICT Industry," ERIM Report Series Research in Management ERS-2006-016-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Jürgen Essletzbichler, 2005. "Diversity, stability and regional growth in the U.S. (1975-2002)," Papers in Evolutionary Economic Geography (PEEG) 0513, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2005.
    19. Frank M.H. Neffke & Martin Henning & Ron Boschma, 2012. "The impact of aging and technological relatedness on agglomeration externalities: a survival analysis," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 485-517, March.
    20. Walker Hanlon & Antonio Miscio, 2014. "Agglomeration: A Dynamic Approach," NBER Working Papers 20728, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:10802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.