"Geographic knowledge spillovers and firm survival"

Robert McComb, Dakshina G De Silva

Research output: Contribution to journalArticle

Abstract

If localization economies are present, fi…rms within denser industry concentrations should ex- hibit higher levels of performance than more isolated fi…rms. Nevertheless, research in industrial organization that has focused on the in‡uences on fi…rm survival has largely ignored the potential effects from agglomeration. Recent studies in urban and regional economics suggests that agglomeration effcts may be very localized. Analyses of industry concentration at the MSA or county-level may fail to detect important elements of intra-industry …rm interaction that occur at the sub-MSA level. Using a highly detailed dataset on …rm locations and characteristics for Texas, this paper analyses agglomeration effects on fi…rm survival over geographic areas as small as a single mile radius. We …nd that greater fi…rm 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.
Original languageEnglish
Pages (from-to)691-701
JournalRegional Science and Urban Economics/Elsevier
StatePublished - Oct 1 2012

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