IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Industry-specific firm growth and aggolmeration

  • Matthias Duschl

    ()

    (Department of Geography, University Marburg)

  • Tobias Scholl

    ()

    (House of Logistics and Mobility GmbH, University Marburg)

  • Thomas Brenner

    ()

    (Department of Geography, Philipps University Marburg)

  • Dennis Luxen

    ()

    (Karlsruhe Institute of Technology)

  • Falk Raschke

    ()

    (House of Logistics and Mobility GmbH, University Frankfurt)

This paper studies the industry-specific relationship between industrial clustering and firm growth. Micro-geographically defined agglomeration measures, free of the modifiable areal unit problem (MAUP), are used to study 23 industries. The spatial impacts of agglomeration of related economic and knowledge generating activities are examined by using travel time distances, a flexible log-logistic decay function framework and quantile regression techniques. We find that firms’ growth prospects tend to be hampered by the agglomeration of own-industry employment, but improved by proximate scientific activity. Results depend on the kind and age of industry. Furthermore, the optimal decay functions that measure agglomeration effects considerably vary both between the industries and variables. Three illustrative cases of industries are discussed in more details.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: ftp://137.248.191.199/RePEc/pum/wpaper/wp0612.pdf
File Function: Full text
Download Restriction: no

Paper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2012-06.

as
in new window

Length: 31 pages
Date of creation: 19 Dec 2012
Date of revision:
Handle: RePEc:pum:wpaper:2012-06
Contact details of provider: Postal:
Deutschhausstrasse 10, 35032 Marburg

Phone: 064212824257
Fax: 064212828950
Web page: http://www.uni-marburg.de/fb19/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Karl Wennberg & Göran Lindqvist, 2010. "The effect of clusters on the survival and performance of new firms," Small Business Economics, Springer, vol. 34(3), pages 221-241, April.
  2. Lychagin, Sergey & Pinkse, Joris & Slade, Margaret E. & Van Reenen, John, 2010. "Spillovers in Space: Does Geography Matter?," CEPR Discussion Papers 7928, C.E.P.R. Discussion Papers.
  3. Michael J. Artis & Ernest Miguelez & Rosina Moreno, 2012. "Agglomeration economies and regional intangible assets: an empirical investigation," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1167-1189, November.
  4. A. Rodriguez-Pose & Riccardo Crescenzi, 2006. "R&D, spillovers, innovatoin systems and the genesis of regional growth in Europe," Departmental Working Papers of Economics - University 'Roma Tre' 0067, Department of Economics - University Roma Tre.
  5. Mercedes Delgado & Michael Porter & Scott Stern, 2010. "Clusters and Entrepreneurship," Working Papers 10-31, Center for Economic Studies, U.S. Census Bureau.
  6. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
  7. Jacob J de Vries & Peter Nijkamp & Piet Rietveld, 2009. "Exponential or Power Distance-Decay for Commuting? An Alternative Specification," Environment and Planning A, , vol. 41(2), pages 461-480, February.
  8. Rikard H. Eriksson, 2011. "Localized Spillovers and Knowledge Flows: How Does Proximity Influence the Performance of Plants?," Economic Geography, Clark University, vol. 87(2), pages 127-152, 04.
  9. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
  10. Joris Pinkse & Margaret E. Slade, 2010. "The Future Of Spatial Econometrics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 103-117.
  11. Cassia, Lucio & Colombelli, Alessandra & Paleari, Stefano, 2009. "Firms' growth: Does the innovation system matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 211-220, September.
  12. Anders Malmberg & Bo Malmberg & Per Lundequist, 2000. "Agglomeration and firm performance: economies of scale, localisation, and urbanisation among Swedish export firms," Environment and Planning A, Pion Ltd, London, vol. 32(2), pages 305-321, February.
  13. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
  14. Drucker, Joshua & Feser, Edward, 2012. "Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 1-14.
  15. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  16. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  17. Matthias Buerger & Tom Broekel & Alex Coad, 2012. "Regional Dynamics of Innovation: Investigating the Co-evolution of Patents, Research and Development (R&D), and Employment," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 565-582, August.
  18. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
  19. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
  20. David L. Rigby & J¸rgen Essletzbichler, 2002. "Agglomeration economies and productivity differences in US cities," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 407-432, October.
  21. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
  22. Daniel J Graham, 2009. "Identifying urbanisation and localisation externalities in manufacturing and service industries," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 63-84, 03.
  23. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
  24. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
  25. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
  26. Elicia Maine & Daniel Shapiro & Aidan Vining, 2010. "The role of clustering in the growth of new technology-based firms," Small Business Economics, Springer, vol. 34(2), pages 127-146, February.
  27. Daan P. van Soest & Shelby Gerking & Frank G. van Oort, 2006. "Spatial Impacts Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 881-899.
  28. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  29. Martin Andersson & Charlie Karlsson, 2007. "Knowledge in Regional Economic Growth—The Role of Knowledge Accessibility," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 129-149.
  30. Gregory Spencer & Tara Vinodrai & Meric Gertler & David Wolfe, 2010. "Do Clusters Make a Difference? Defining and Assessing their Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 697-715.
  31. N. Lesca, 2010. "Introduction," Post-Print halshs-00640602, HAL.
  32. Antony Potter & H. Doug Watts, 2011. "Evolutionary agglomeration theory: increasing returns, diminishing returns, and the industry life cycle," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 417-455, May.
  33. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 495-518, June.
  34. Andersson, Martin & Lööf, Hans, 2009. "Agglomeration and Productivity - evidence from firm-level data," Working Paper Series in Economics and Institutions of Innovation 170, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  35. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, 04.
  36. Otto, Anne & Fornahl, Dirk, 2008. "Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation," IAB Discussion Paper 200813, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  37. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  38. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 79-107, April.
  39. Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
  40. Mercedes Delgado & Michael Porter & Scott Stern, 2010. "Clusters, Convergence, and Economic Performance," Working Papers 10-34, Center for Economic Studies, U.S. Census Bureau.
  41. 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.
  42. John R. Baldwin & W. Mark Brown & David L. Rigby, 2010. "Agglomeration Economies: Microdata Panel Estimates From Canadian Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 50(5), pages 915-934, December.
  43. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Wiley Blackwell, vol. 39(3), pages 414-435.
  44. Catherine Beaudry & G. Swann, 2009. "Firm growth in industrial clusters of the United Kingdom," Small Business Economics, Springer, vol. 32(4), pages 409-424, April.
  45. Ron Boschma & Dirk Fornahl, 2011. "Cluster Evolution and a Roadmap for Future Research," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1295-1298, November.
  46. Giovanni Dosi & Sébastien Lechevalier & Angelo Secchi, 2010. "Introduction: Interfirm heterogeneity--nature, sources and consequences for industrial dynamics," Industrial and Corporate Change, Oxford University Press, vol. 19(6), pages 1867-1890, December.
  47. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  48. David B. audretsch & Erik E. Lehmann, 2005. "Mansfield's Missing Link: The Impact of Knowledge Spillovers on Firm Growth," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 207-210, 01.
  49. Martijn J. Burger & Frank G. van Oort & Bert van der Knaap, 2010. "A Treatise on the Geographical Scale of Agglomeration Externalities and the MAUP," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 9(1), pages 19-39.
  50. Stephen Hymer & Peter Pashigian, 1962. "Firm Size and Rate of Growth," Journal of Political Economy, University of Chicago Press, vol. 70, pages 556.
  51. Luigi Guiso & Fabiano Schivardi, 2007. "Spillovers in Industrial Districts," Economic Journal, Royal Economic Society, vol. 117(516), pages 68-93, 01.
  52. Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
  53. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 14, Center for Policy Research, Maxwell School, Syracuse University.
  54. John Baldwin & Desmond Beckstead & W. Mark Brown & David Rigby, 2008. "Agglomeration and the Geography of Localization Economies in Canada," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 117-132.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pum:wpaper:2012-06. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christoph Mengs)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.