Co-agglomeration of Knowledge-Intensive Business Services and Multinational Enterprises

Wouter Jacobs (), Hans Koster and Frank Oort

No 1225, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: It has been argued that the relationship between knowledge intensive business services (KIBS) and multi-national enterprises (MNEs) within the regional economy is advantageous for urban and regional dynamics. It is likely that KIBS aim to locate proximate to (internationally operating) MNEs because of agglomeration externalities. The impact of MNEs on the birth of KIBS has rarely been examined, and the research on the new formation of KIBS has mainly adopted a case study approach, thus limiting the opportunity for generalisation. We have taken a more quantitative approach using a continuous space framework to test whether proximity is important for the co-location of KIBS and MNEs in the metropolitan area of Amsterdam in the Netherlands. Our results, controlled for other location factors, indicate that KIBS are co-agglomerated with MNEs and that the presence of a MNE significantly influences the birth of KIBS nearby, but the effect on such start-ups is considerably smaller than the positive effect of the presence of already established KIBS. We discuss the implications for urban and regional development strategies and policy initiatives.

Keywords: knowledge intensive business services; multi-national enterprises; start-ups; point pattern methodology; Amsterdam. (search for similar items in EconPapers)
JEL-codes: F23 L25 L84 R12 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2012-12, Revised 2012-12
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-knm, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://econ.geo.uu.nl/peeg/peeg1225.pdf Version December 2012 (application/pdf)

Related works:
Journal Article: Co-agglomeration of knowledge-intensive business services and multinational enterprises (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1225

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