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The inert firm; why old firms show a stickiness to their location

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  • Aleid E. Brouwer

Abstract

This paper investigates the tendency of older firms to show stickiness to their home-region or fixed location, with the increase of age (in years since founding), as found in earlier research. Empirical evidence supporting this argument is found from a telephone survey under the population of old firms in the Netherlands. In the current paper an analysis is done to determine which other firm characteristics -next to age in years-, influence this stickiness to place; such as innovative behaviour, network relationships, market, size (in number of employees), region and location type. This analysis is done on written questionnaires of 179 firms in the Netherlands, 37 of these firms are specifically labelled as ‘old firms’ (founded before 1851). Tested is whether inert behaviour, which according to the theory of structural inertia increases with age, also has an influence on the location of firms. Furthermore, the relationship between the spatial environment and other firm characteristics is investigated.

Suggested Citation

  • Aleid E. Brouwer, 2004. "The inert firm; why old firms show a stickiness to their location," ERSA conference papers ersa04p165, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p165
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    References listed on IDEAS

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    Cited by:

    1. Jan Ženka, 2009. "Delokalizace zpracovatelského průmyslu ČR (komponentní analýza) [Delocalization of czech manufacturing: which branches of manufacturing are threatened by relocation abroad?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(1), pages 79-93.
    2. Jan Ženka & Vladislav Čadil, 2009. "Regional distribution of technology-intensive manufacturing industries in the czech republic with an accent on risk of delocalisation," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(1), pages 61-77.
    3. Oerlemans, Leon & Chan, K.Y. & Knoben, Joris & Vermeulen, P.A.M., 2018. "Structural and geographical conditions for exploitative innovation : Evidence from South African manufacturing firms," Other publications TiSEM 4abcf615-a0d4-49ef-ba25-c, Tilburg University, School of Economics and Management.
    4. Brixy Udo, 2011. "Bedeutung und Beweggründe der Binnenverlagerungen von Betrieben in Deutschland," ZFW – Advances in Economic Geography, De Gruyter, vol. 55(1-2), pages 141-157, October.

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