TY - JOUR
T1 - Geographic concentration and high tech firm survival
AU - De Silva, Dakshina G.
AU - McComb, Robert P.
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 firm survival 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 firm survival 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 firm survival 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 firm survival 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 - Agglomeration
KW - Firm survival
KW - Knowledge externalities
KW - Localization
UR - http://www.scopus.com/inward/record.url?scp=84860171072&partnerID=8YFLogxK
U2 - 10.1016/j.regsciurbeco.2012.03.001
DO - 10.1016/j.regsciurbeco.2012.03.001
M3 - Article
AN - SCOPUS:84860171072
SN - 0166-0462
VL - 42
SP - 691
EP - 701
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
IS - 4
ER -