Evolving localization patterns of company foundations Evidence from the German MST-industry
We investigate company foundations in the German micro technology industry (MST) by means of a spatial-temporal micro-geographic analysis. Our dataset includes the exact location (latitude, longitude) of all German MST firms, relevant research institutions and MST-patent owners including their date of inception for a timeframe of 12 years. Furthermore, we obtain employment data at a municipality level for three related industries. In order to deal with our unusual detailed data, we develop a new distance-based framework for a logistic regression that enables the usage of micro geographic data that is free of any spatial aggregation. A temporal component is integrated by means of a Markov chain so that our model allows both, a micro spatial and a micro temporal analysis. The model detects spatial dependencies on a firm level instead on an aggregated regional level. This allows an econometric modeling without the Modifiable Areal Unit Problem (MAUP), a well-known problem in spatial econometrics. Recently, the MAUP has been tackled by new metrics such as the Duranton-Overman-Index that however only allow the observance of (co-) localization but cannot include multiple variables. Our framework for a logistic regression is able to fill this methodological gap as it is distance-based, allows the observation of multiple variables and gives results for global models. Locations of company foundations are investigated with respect to their spatial proximity to similar firms, patent owner, related industries and research institutions and are benchmarked with the overall distribution of company foundations in Germany. We perform one investigation for the whole timeframe and three separate investigations with a three years period in order to test for temporal caused dynamics. The empirical results reveal some interesting findings that stand in line with well-established theories: Spatial proximity to other MST firms and to relevant research institutions has a clear positive influence on where a new firm is founded. This might be due to positive local spillover or to spinoffs from firms or research institutions. While this confirms that MST-firms depend on a high local innovation capacity, the proximity to owners of patents and to qualified workers in related industries has little or even a negative influence. Furthermore, the influence of the different actors is not constant over time but evolves with the industry?s life cycle. The increasing importance of spatial proximity to firms stands in line with the self-augmenting process theory, while the parallel decreasing importance of proximity to research institutions suggests a shift from tacit to explicit knowledge. The analysis shows that the MST industry becomes more self-contained and that proximity to related industries is of decreasing importance.
|Date of creation:||Nov 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 108(3), pages 577-598.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002.
"Geographic Concentration As A Dynamic Process,"
The Review of Economics and Statistics,
MIT Press, vol. 84(2), pages 193-204, May.
- Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
- Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc.
- Thomas Klier & Daniel P. McMillen, 2008.
"Evolving Agglomeration In The U.S. Auto Supplier Industry,"
Journal of Regional Science,
Wiley Blackwell, vol. 48(1), pages 245-267.
- Thomas H. Klier & Daniel P. McMillen, 2006. "Evolving agglomeration in the U.S. auto supplier industry," Working Paper Series WP-06-20, Federal Reserve Bank of Chicago.
- David B. Audretsch & Erik E. Lehmann & Susanne Warning, 2004.
"University Spillovers and New Firm Location,"
Papers on Entrepreneurship, Growth and Public Policy
2004-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- David Audretsch & Erik Lehmann & Susanne Warning, 2004. "University Spillovers and New Firm Location," Working Papers of the Research Group Heterogenous Labor 04-13, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
- Frank Neffke & Martin Svensson Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2008. "Who Needs Agglomeration? Varying Agglomeration Externalities and the Industry Life Cycle," Papers in Evolutionary Economic Geography (PEEG) 0808, Utrecht University, Section of Economic Geography, revised Apr 2008.
- Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, 03.
- Guido Buenstorf & Steven Klepper, 2009.
"Heritage and Agglomeration: The Akron Tyre Cluster Revisited,"
Royal Economic Society, vol. 119(537), pages 705-733, 04.
- Guido Buenstorf & Steven Klepper, 2005. "Heritage and Agglomeration: The Akron Tire Cluster Revisited," Papers on Economics and Evolution 2005-08, Philipps University Marburg, Department of Geography.
- Tobias Scholl & Thomas Brenner, 2013. "Detecting Spatial Clustering Using a Firm-Level Index," Working Papers on Innovation and Space 2012-02, Philipps University Marburg, Department of Geography.
- Eric Marcon & Florence Puech, 2010. "Measures of the geographic concentration of industries: improving distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 745-762, September.
- Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
- Reinhold Kosfeld & Hans-Friedrich Eckey & Jørgen Lauridsen, 2009.
"Spatial Point Pattern Analysis and Industry Concentration,"
MAGKS Papers on Economics
200916, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Reinhold Kosfeld & Hans-Friedrich Eckey & Jørgen Lauridsen, 2011. "Spatial point pattern analysis and industry concentration," The Annals of Regional Science, Springer, vol. 47(2), pages 311-328, October.
- Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
- Steven Klepper, 2007.
"The Evolution of Geographic Structure in New Industries,"
in: Applied Evolutionary Economics and Economic Geography, chapter 4
Edward Elgar Publishing.
- Steven Klepper, 2006. "The Evolution of Geographic Structure in New Industries," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 135-158.
- Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June.
- Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p85. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.