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Proximity and economic activity: An analysis of vendor‐university transactions

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  • Nathan Goldschlag
  • Julia Lane
  • Bruce A. Weinberg
  • Nikolas Zolas

Abstract

This paper uses transaction‐based data to provide new insights into the link between the geographic proximity of businesses and associated economic activity. It develops two new measures of, and a set of stylized facts about, the distances between observed transactions between customers and vendors for a research intensive sector. Spending on research inputs is more likely with businesses physically closer to universities than those further away. Firms supplying a university project in one year are more likely to subsequently open an establishment near that university. Vendors who have supplied a project, are subsequently more likely to be a vendor on the same or related project.

Suggested Citation

  • Nathan Goldschlag & Julia Lane & Bruce A. Weinberg & Nikolas Zolas, 2019. "Proximity and economic activity: An analysis of vendor‐university transactions," Journal of Regional Science, Wiley Blackwell, vol. 59(1), pages 163-182, January.
    • Handle: RePEc:bla:jregsc:v:59:y:2019:i:1:p:163-182
    DOI: 10.1111/jors.12397
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    Cited by:

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    2. Bianchini, Stefano & Llerena, Patrick & Patsali, Sofia, 2019. "Demand-pull innovation in science: Empirical evidence from a research university’s suppliers," Research Policy, Elsevier, vol. 48(S).
    3. Chang, Wan-Ying & Cheng, Wei & Lane, Julia & Weinberg, Bruce, 2019. "Federal funding of doctoral recipients: What can be learned from linked data," Research Policy, Elsevier, vol. 48(6), pages 1487-1492.

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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