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Geographic concentration and high tech firm survival

Research output: Contribution to journalJournal article


<mark>Journal publication date</mark>07/2012
<mark>Journal</mark>Regional Science and Urban Economics
Issue number4
Number of pages11
Pages (from-to)691-701
<mark>Original language</mark>English


If localization economies are present, firms within denser industry concentrations should exhibit higher levels of performance than more isolated firms. Nevertheless, research in industrial organization that has focused on the influences on firmsurvival has largely ignored the potential effects from agglomeration. Recent studies in urban and regional economics suggest that agglomeration effects may be very localized. Analyses of industry concentration at the MSA or county-level may fail to detect important elements of intra-industry firm interaction that occur at the sub-MSA level. Using a highly detailed dataset on firm locations and characteristics for Texas, this paper analyses agglomeration effects on firmsurvival over geographic areas as small as a single mile radius. We find that greater firm density within very close proximity (within 1 mile) of firms in the same industry increases mortality rates while greater concentration over larger distances reduces mortality rates.