The Dynamics of Agglomeration Externalities along the Life Cycle of Industries

FMH (Frank) Neffke; M Henning; RA Boschma; KJ Lundquist; LO Olander

doi:10.1080/00343401003596307

The Dynamics of Agglomeration Externalities along the Life Cycle of Industries

FMH (Frank) Neffke, M Henning, RA Boschma, KJ Lundquist, LO Olander

Applied Economics

Research output: Contribution to journal › Article › Academic › peer-review

201 Citations (Scopus)

Abstract

This paper investigates the changing roles of agglomeration externalities along the industry life cycle. It is argued that industries have different agglomeration needs in different stages of their life cycles because their mode of competition, innovation intensity, and learning opportunities change over time. For twelve Swedish manufacturing industries, it is determined for each year between 1974 and 2004 whether the industry is in a young, intermediate, or mature stage. Whereas Marshall-Arrow-Romer (MAR) externalities steadily increase with the maturity of industries, the effects of local diversity (Jacobs' externalities) are positive for young industries, but decline and even become negative for more mature industries.

Original language	Undefined/Unknown
Pages (from-to)	49-65
Number of pages	17
Journal	Regional Studies
Volume	45
Issue number	1
DOIs	https://doi.org/10.1080/00343401003596307
Publication status	Published - 2011

Access to Document

10.1080/00343401003596307

http://hdl.handle.net/1765/70558

Cite this

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