Industry-specific firm growth and aggolmeration

Matthias Duschl, Tobias Scholl (), Thomas Brenner (), Dennis Luxen () and Falk Raschke ()
Additional contact information
Tobias Scholl: House of Logistics and Mobility GmbH, University Marburg
Dennis Luxen: Karlsruhe Institute of Technology
Falk Raschke: House of Logistics and Mobility GmbH, University Frankfurt

No 2012-06, Working Papers on Innovation and Space from Philipps University Marburg, Department of Geography

Abstract: This paper studies the industry-specific relationship between industrial clustering and firm growth. Micro-geographically defined agglomeration measures, free of the modifiable areal unit problem (MAUP), are used to study 23 industries. The spatial impacts of agglomeration of related economic and knowledge generating activities are examined by using travel time distances, a flexible log-logistic decay function framework and quantile regression techniques. We find that firms’ growth prospects tend to be hampered by the agglomeration of own-industry employment, but improved by proximate scientific activity. Results depend on the kind and age of industry. Furthermore, the optimal decay functions that measure agglomeration effects considerably vary both between the industries and variables. Three illustrative cases of industries are discussed in more details.

Keywords: Firm growth; industrial clusters; agglomeration; MAUP; distance decay function; quantile regression (search for similar items in EconPapers)
JEL-codes: C31 D92 L25 R11 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-12-19
New Economics Papers: this item is included in nep-cse and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Industry-Specific Firm Growth and Agglomeration (2015)
Working Paper: Industry-specific firm growth and agglomeration (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pum:wpaper:2012-06

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