nep-geo New Economics Papers
on Economic Geography
Issue of 2009‒10‒17
thirteen papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. The role of spatial agglomeration in a structural model of innovation, productivity and export By R. Antonietti; G. Cainelli
  2. Innovating in the periphery: Firms, values, and innovation in Southwest Norway By Rune Dahl Fitjar; Andrés Rodríguez-Pose
  3. The Area and Population of Cities: New Insights from a Different Perspective on Cities By Hernán D. Rozenfeld; Diego Rybski; Xavier Gabaix; Hernán A. Makse
  4. Unionized Wage Setting and the Location of Firms By Karolien De Bruyne
  5. El nuevo acuerdo de financiación regional: un análisis de urgencia ADENDA By Angel de la Fuente
  6. "The Steam Engine and U.S. Urban Growth During the Late Nineteenth Century" By Burton A. Abrams; Jing Li; James G. Mulligan
  7. Sincronia e distanza nel ciclo economico delle regioni italiane By Andrea Brasili; Cristina Brasili
  8. Berufsbedingte Mobilität - empirische Befunde für Deutschland By Claudia Wesselbaum-Neugebauer
  9. Proximity and the Evolution of Collaboration Networks: Evidence from R&D Projects within the GNSS Industry By Pierre-Alexandre Balland
  10. Knowledge networks in the Dutch aviation industry: the proximity paradox By Tom Broekel; Ron Boschma
  11. Global pipelines or global buzz? : a micro-level approach towards the knowledge-based view of clusters By Bahlmann, M.D.; Huysman, M.H.; Elfring, T.
  12. Series enlazadas de algunos agregados económicos nacionales y regionales, 1955-2007 Versión 2.1 By Angel de la Fuente
  13. Mom-and-Pop Meet Big-Box: Complements or Substitutes? By John Haltiwanger; Ron Jarmin; C.J. Krizan

  1. By: R. Antonietti; G. Cainelli
    Date: 2009–09
  2. By: Rune Dahl Fitjar (International Research Institute of Stavanger); Andrés Rodríguez-Pose (IMDEA Ciencias Sociales)
    Abstract: How do peripheral and relatively isolated regions innovate? Recent research has tended to stress the importance of agglomeration economies and geographical proximity as key motors of innovation. According to this research, large core areas have significant advantages with respect to peripheral areas in innovation potential. Yet, despite these trends, some remote areas of the periphery are remarkably innovative even in the absence of critical innovation masses. In this paper we examine one such case – the region of Southwest Norway – which has managed to remain innovative and dynamic, despite having a below average investment in R&D in the Norwegian context. The results of the paper highlight that innovation in Southwest Norway does not stem from agglomeration and physical proximity, but from other types of proximity, such as cognitive and organizational proximity, rooted in soft institutional arrangements. This suggests that the formation of regional hubs with strong connections to international innovative networks may be a way to overcome peripherality in order to innovate.
    Keywords: innovation; institutions; distance; trust; open-mindedness; periphery; Norway
    Date: 2009–10–09
  3. By: Hernán D. Rozenfeld; Diego Rybski; Xavier Gabaix; Hernán A. Makse
    Abstract: The distribution of the population of cities has attracted a great deal of attention, in part because it sharply constrains models of local growth. However, to this day, there is no consensus on the distribution below the very upper tail, because available data need to rely on the “legal†rather than “economic†definition of cities for medium and small cities. To remedy this difficulty, in this work we construct cities “from the bottom up†by clustering populated areas obtained from high-resolution data. This method allows us to investigate the population and area of cities for urban agglomerations of all sizes. We find that Zipf’s law (a power law with exponent close to 1) for population holds for cities as small as 12,000 inhabitants in the USA and 5,000 inhabitants in Great Britain. In addition the distribution of city areas is also close to a Zipf’s law. We provide a parsimonious model with endogenous city area that is consistent with those findings.
    JEL: D30 D51 J61 R12
    Date: 2009–10
  4. By: Karolien De Bruyne
    Abstract: We analyze how unionized wage setting a¤ects the location of firms. We find that the degree of centralization (at firm or sectoral level) and regionalization (at regional or supra-regional level) is crucial. We show that wage setting at the firm level is the best policy to attract firms when trade costs are low, while wage setting at a more centralized level is most effective to attract firms when trade costs are high. Moreover, wage setting at the supra-regional level is beneficial for the already more agglomerated region and hurts the peripheral region.
    Keywords: location, unions, regionalization, centralization
    JEL: J51 R12 R3 F12
    Date: 2009
  5. By: Angel de la Fuente
    Abstract: This note contains some addenda to a recent paper (de la Fuente, 2009) that analyzed the new Spanish system of regional financing on the basis of the agreement between the central and regional Governments reached last July. The note updates my previous discussion after examining the bill that has been recently sent to Parliament by the Government and identifies some technical problems of the Government's proposal.
    Keywords: regional financing, Spain
    JEL: H71 H77
    Date: 2009–09–30
  6. By: Burton A. Abrams (Department of Economics,University of Delaware); Jing Li; James G. Mulligan (Department of Economics,University of Delaware)
    Abstract: There is an on-going debate concerning the role that the steam engine played in fueling urban growth in the U.S. during the second half of the nineteenth century. While a consensus has been building that steam power played little or no role in affecting urban growth, we find evidence to the contrary by using previously untapped county-level data on steam power in manufacturing.
    Keywords: urbanization, technology, convergence
    JEL: N32 O14 O18
    Date: 2009
  7. By: Andrea Brasili; Cristina Brasili (Università di Bologna)
    Abstract: This paper is based on the data set of 20 Italian regional high frequency business indicators proposed in Benni, Brasili (2006) and successively developed by RegiosS (Cycle & Trends association). The aim of the present paper is to provide a retrospective analysis of the characteristics of regional cycles and their co-movements to better understand the consequences of the global crisis on the local economies. We will going to apply two methodologies to analyse the distances among the Italian regional business cycle. We calculate the cohesion measure (Croux et al. 2001) on two sub-samples of the indicators, in order to evaluate if co-movements have increased recently. Moreover we calculate the cohesion measure also for the regions before and after the adoption of the Euro currency and respect to the Italian cycle. On the structural side the differential on cycle profiles of the regions is interpreted in terms of the different product specialisation, the degree of financial markets development and the research intensity of firms.
    Keywords: Italian Regional Cycle, Coincident Indicators, Cohesion, Dissimilarity Matrix
    Date: 2009
  8. By: Claudia Wesselbaum-Neugebauer (Schumpeter School of Business and Economics, University of Wuppertal)
    Abstract: The deductibility of commuting costs in Germany is discussed permanently. The paper adresses the question, whether the taxpayers do react to the commuting allowances (Entfernungspauschale). It is shown that individual mobility depends on the responsibilities for companion, children and relatives. The commuting allowances are unsuitable to realize aims of urban, traffic and regional planning. Hence a return back to the system of full deductibility of work-related expenses is necessary if they choose public transportation. Furthermore a tax-deductible flat-rate per kilometer is required if they go by car.
    Keywords: mobility, commuting allowance, commuting cost, labor
    JEL: D1 H24 H31
    Date: 2009–10
  9. By: Pierre-Alexandre Balland
    Abstract: Increasing attention had been given recently to understand how networks affect organizational performance in innovation studies. Surprisingly, underlying mechanisms of their evolution have been more neglected, and still remain unclear. This lack of interest is denounced today by recent papers which claim that it is a crucial issue for economic geography. Especially the influence of different forms of proximity on the network’s changes needs to be clarified. This paper contributes to this ongoing debate by determining empirically how organizations choose their partners given to their geographical, organizational, institutional, cognitive and social proximity. The relational database is constructed from publicly available information on the R&D collaborative projects of the 6th European Union Framework Program within the navigation by satellite industry (GNSS). Patterns of evolution of the GNSS collaboration network are determined according to a longitudinal study of the relational changes occurred between four consecutive years, from 2004 to 2007. Empirical results show that geographical, organizational and institutional proximity favour collaboration. Inversely, organizations prefer to avoid partnerships when they share a cognitive proximity (same knowledge bases). The last result demonstrates that the kind of project studied does not create a sufficient level of social proximity to stimulate collaboration.
    Keywords: proximity, collaboration networks, innovation, network longitudinal analysis, R&D collaborative projects, SIENA
    JEL: O32 R12
    Date: 2009–10
  10. By: Tom Broekel; Ron Boschma
    Abstract: The importance of geographical proximity for interaction and knowledge sharing has been discussed extensively in economic geography in recent years. There is increasing consensus that it is just one out of many types of proximities that might be relevant. We argue that proximity may be a crucial driver for agents to connect and exchange knowledge, but too much proximity between these agents on any of the dimensions might harm their innovative performance at the same time. In a study on knowledge networks in the Dutch aviation industry, we test this so-called proximity paradox empirically. We find evidence that the proximity paradox holds to some degree. Our study clearly shows that cognitive, social and geographical proximity are crucial for explaining the knowledge network of the Dutch aviation industry. But while it takes cognitive, social and geographical proximity to exchange knowledge, we found evidence that proximity lowers firms’ innovative performance, but only in the cognitive dimension.
    Keywords: proximity, paradox, social network analysis, knowledge networks, aviation
    JEL: R11 R12 O32
    Date: 2009–10
  11. By: Bahlmann, M.D. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Huysman, M.H.; Elfring, T.
    Abstract: Recent theorizing in cluster literature emphasizes the importance of inter-cluster knowledge linkages in addition to local knowledge dynamics, enabling new and innovative ideas to flow from one cluster to the other. This paper contributes to this topic by studying inter-cluster knowledge linkages at an individual level of analysis, making use of qualitative social network measures. Central to this case is the Amsterdam New Media-cluster, with a special focus on entrepreneurs engaging in lively inter-cluster exchange of knowledge and debate, resulting in the exchange of new visions and ideas across cluster boundaries. The proposed distinction between local buzz and global pipelines is complemented by adding a third category of inter-local knowledge exchange: global buzz.
    Keywords: pipelines; global/ local buzz; entrepreneurship; cluster
    Date: 2009
  12. By: Angel de la Fuente
    Abstract: I construct "homogeneous" series of GVA at current and constant prices, employment and population for the Spain and its regions covering the period 1955-2007. The series are obtained by linking the Regional Accounts of the National Statistical Institute with the series constructed by Julio Alcaide and his team for the BBVA Foundation. The "switching point" at which this last source stops being used as a reference to construct the linked series is determined using a procedure that allows me to estimate which of the two competing series would produce an estimator with the lowest MSE when it is used as dependent variable in a regression on an arbitrary independent variable. To the extent that it is possible, the difference between the two series found at the point of linkage is distributed between the initial levels of the older series and its subsequent growth using external estimates of the relevant variables at the beginning of the sample period.
    Date: 2009–09–30
  13. By: John Haltiwanger; Ron Jarmin; C.J. Krizan
    Abstract: In part due to the popular perception that Big-Boxes displace smaller, often family owned (a.k.a. Mom-and-Pop) retail establishments, several empirical studies have examined the evidence on how Big-Boxes’ impact local retail employment but no clear consensus has emerged. To help shed light on this debate, we exploit establishment-level data with detailed location information from a single metropolitan area to quantify the impact of Big-Box store entry and growth on nearby single unit and local chain stores. We incorporate a rich set of controls for local retail market conditions as well as whether or not the Big-Boxes are in the same sector as the smaller stores. We find a substantial negative impact of Big-Box entry and growth on the employment growth at both single unit and especially smaller chain stores – but only when the Big-Box activity is both in the immediate area and in the same detailed industry.
    Keywords: Big-Boxes, Small Business, Retail Trade, Firm Location, Structural Change
    JEL: R30 L16
    Date: 2009–09

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