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Concentration, Coagglomeration and Spillovers: The Geography of New Market Firms in Germany

  • Dirk Dohse

    ()

  • Sven-Christian Steude

    ()

The Neuer Markt, launched in 1997 by Deutsche Börse, the German stock exchange, is Europe’s closest equivalent to the Nasdaq, the US high-tech oriented stock market. Although the New Economy in Germany is not restricted to Neuer Markt firms one may argue that these firms and their employees form the spearhead of Germany’s New Economy. In the current paper we employ the ‘dartboard approach’ pioneered by Ellison and Glaeser to analyse the spatial concentration of New Economy employment in Germany, the coagglomeration of firms belonging to different sub-sectors of Neuer Markt and the (intraregional) spillovers between different high tech industries. We refine the analysis by differentiating between Neuer Markt firms in general and New Economy firms in a more narrow sense, and we compare their spatial distribution with the structure of the ‘traditional economy’ as well as with the spatial distribution of other innovative activities such as patent applications or R&D. Key Words: Geographic concentration, New Economy, Neuer Markt, Dartboard Approach JEL Classification: G19, O30, O18, R11

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p230.

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Date of creation: Aug 2003
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Handle: RePEc:wiw:wiwrsa:ersa03p230
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  1. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  2. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2002. "The Geographical Distribution of Production Activity in the UK," CEPR Discussion Papers 3627, C.E.P.R. Discussion Papers.
  3. Dohse, Dirk, 2000. "Regionen als Innovationsmotoren: zur Neuorientierung in der deutschen Technologiepolitik," Kiel Discussion Papers 366, Kiel Institute for the World Economy (IfW).
  4. Dirk Dohse & Andrea Schertler, 2003. "Explaining the Regional Distribution of New Economy Firms; A Count Data Analysis," Kiel Working Papers 1193, Kiel Institute for the World Economy.
  5. Rolf Sternberg & Christine Tamasy, 1999. "Munich as Germany's No. 1 High Technology Region: Empirical Evidence, Theoretical Explanations and the Role of Small Firm/Large Firm Relationships," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 367-377.
  6. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
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