Spinoffs and Clustering

Russell Golman () and Steven Klepper

No 1309, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: Geographic clustering of industries is typically attributed to localized, pecuniary or non-pecuniary externalities. Recent studies across innovative industries suggestthat explosive cluster growth is associated with the entry and success of spinoff firms. We develop a model to explain the patterns regarding cluster growth and spinoff formation and performance, without relying on agglomeration externalities. Clustering naturally follows from spinoffs locating near their parents. In our model, firms grow and spinoffs form through the discovery of new submarkets based on innovation. Rapid and successful innovation creates more opportunities for spinoff entry and drives a region’s growth.

Keywords: Agglomeration; Clusters; Entry; Innovation; Spinoffs (search for similar items in EconPapers)
JEL-codes: L25 O31 R12 R30 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-05, Revised 2013-05
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-ind, nep-ino, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://econ.geo.uu.nl/peeg/peeg1309.pdf Version May 2013 (application/pdf)

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Journal Article: Spinoffs and clustering (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1309

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