Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany

Werner Bönte ()

International Journal of the Economics of Business, 2004, vol. 11, issue 3, 259-278

Abstract: This article investigates the impact of various agglomeration forces on employment and innovation for a sample of aeronautical cluster firms in Northern Germany and a control group of geographically dispersed aeronautical firms in other German regions. The findings suggest that employment growth is positively affected by labor market pooling but this effect is not cluster-specific. The firms' probability of innovating is positively influenced by knowledge flows from proximate scientific institutions and public information sources as well as demanding local customers. However, only the effect of demanding customers is cluster-specific.

Keywords: Industrial Clusters; Innovation; Firm Performance; Aerospace; JEL Classifications: L62; O30; R12 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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DOI: 10.1080/1357151042000286393

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