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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Geographic concentration and high tech firm survival
AU - De Silva, Dakshina
AU - McComb, Robert
PY - 2012/7
Y1 - 2012/7
N2 - 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.
AB - 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.
KW - Firm survival
KW - Agglomeration
KW - Localization
KW - Knowledge externalities
U2 - 10.1016/j.regsciurbeco.2012.03.001
DO - 10.1016/j.regsciurbeco.2012.03.001
M3 - Journal article
VL - 42
SP - 691
EP - 701
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
SN - 0166-0462
IS - 4
ER -