Does Successful Innovation Require Large Urban Areas? Germany as a Counterexample

Michael Fritsch () and Michael Wyrwich

No 2020-004, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: Popular theories claim that innovation activities should be located in large cities because of more favorable environmental conditions that are absent in smaller cities or remote and rural areas. Germany provides a clear counterexample to such theories. We argue that a main force behind the geography of innovation in Germany is the country's federal tradition that has shaped the settlement structure, the geographic distribution of universities and public research institutions, as well as local access to finance. Additional factors that may play a role in this respect are the system of education and the tax treatment of inheriting a business. We demonstrate the long-lasting effect of the historical political structure and distribution of knowledge sources on innovation activities today. We conclude that historical factors that shape the settlement structure and location of knowledge sources are of key importance for the geographic location of innovation activities.

Keywords: Innovation; patents; agglomeration economies; cities; Germany (search for similar items in EconPapers)
JEL-codes: L26 O31 R11 (search for similar items in EconPapers)
Date: 2020-02-24
New Economics Papers: this item is included in nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2020/wp_2020_004.pdf (application/pdf)

Related works:
Journal Article: Does Successful Innovation Require Large Urban Areas? Germany as a Counterexample (2021)
Working Paper: Does Successful Innovation Require Large Urban Areas? Germany as a Counterexample (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2020-004

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().