Firm Performance in the Periphery: On the Relation between Firm-Internal Knowledge and Local Knowledge Spillovers

Markus Grillitsch and Magnus Nilsson

No 2015/40, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: This paper challenges one of the fundamental propositions within economic geography; that location in knowledge regions contributes to firm performance in general and especially for knowledge intensive firms that compete on the basis of knowledge. Our analysis of Swedish micro-data on 32,535 firms from 2004-2011 provides evidence that knowledge intensive firms benefit less from local knowledge spillovers than firms with comparably low in-house knowledge. This suggests that firms with high internal competencies can compensate for a lack of local knowledge spillovers and that negative knowledge externalities may make location outside knowledge centers more beneficial for such firms.

Keywords: periphery; firm performance; spillovers; agglomeration (search for similar items in EconPapers)
JEL-codes: O30 R10 R11 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2015-10-23
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-geo, nep-ino, nep-knm, nep-sbm and nep-ure
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2015_040

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