IDEAS home Printed from https://ideas.repec.org/a/bla/presci/v101y2022i4p979-999.html
   My bibliography  Save this article

World City Innovation and Service Networks and Economic Growth

Author

Listed:
  • René Belderbos
  • Florence Benoit
  • Ben Derudder

Abstract

In addition to their often‐cited role as global service hubs, world cities are also global innovation hubs with their connectivity in knowledge networks crucial for the innovation clusters they harbour. While both aspects of world cities' global connectivity may allow their urban economies to grow, we argue that specialization in one of these two networks may increase economic performance. We provide systematic evidence of this substitution effect by examining the changing positions of 129 world cities in inter‐city innovation and service firm networks (2000–2012). Fixed effects panel analysis of city GDP growth confirm that the two networks are partial substitutes. Además de su papel, citado a menudo, como centros globales de servicios, las ciudades en todo el mundo son también centros globales de innovación, con su conectividad en redes de conocimiento cruciales para los núcleos de innovación que albergan. Aunque ambos aspectos de la conectividad global de las ciudades en todo el mundo pueden permitir el crecimiento de sus economías urbanas, se sostiene que la especialización en una de estas dos redes puede mejorar el desempeño económico. Se proporcionan pruebas sistemáticas de este efecto de sustitución examinando las posiciones cambiantes de 129 ciudades de todo el mundo en las redes de innovación y empresas de servicios entre ciudades (2000–2012). El análisis de panel de efectos fijos del crecimiento del PIB de las ciudades confirma que las dos redes son parcialmente sustitutivas. 世界の都市は、そのグローバル・サービス・ハブとしての役割を引き合いに出されることが多いが、さらには世界の都市に存在するイノベーション・クラスターにとって不可欠な知識ネットワークにつながるグローバル・イノベーション・ハブでもある。世界の都市のグローバルな連結性の2つの側面が都市経済の成長を可能にすると考えられるが、我々は、この2つのネットワークのうちの1つに特化することが経済状況を向上させる可能性があると考える。本稿では、世界の129都市における都市間協力によるイノベーション及びサービス企業のネットワークの位置変化(2000~2012年)を分析することにより、この代替効果の系統的レビューによるエビデンスを提示する。都市のGDP成長率の固定効果パネル分析から、2つのネットワークが部分代替であることが確認される。

Suggested Citation

  • René Belderbos & Florence Benoit & Ben Derudder, 2022. "World City Innovation and Service Networks and Economic Growth," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 979-999, August.
  • Handle: RePEc:bla:presci:v:101:y:2022:i:4:p:979-999
    DOI: 10.1111/pirs.12687
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pirs.12687
    Download Restriction: no

    File URL: https://libkey.io/10.1111/pirs.12687?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bettencourt, Luis M.A. & Lobo, Jose & Strumsky, Deborah, 2007. "Invention in the city: Increasing returns to patenting as a scaling function of metropolitan size," Research Policy, Elsevier, vol. 36(1), pages 107-120, February.
    2. Francesco Capone & Luciana Lazzeretti & Niccolò Innocenti, 2021. "Innovation and diversity: the role of knowledge networks in the inventive capacity of cities," Small Business Economics, Springer, vol. 56(2), pages 773-788, February.
    3. Robert Huggins & Piers Thompson, 2014. "A Network-based view of regional growth," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 511-545.
    4. Moritz Breul, 2019. "Cities in ‘multiple globalizations’: insights from the upstream oil and gas World City Network," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 6(1), pages 25-31, January.
    5. Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2016. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," Research Policy, Elsevier, vol. 45(1), pages 177-194.
    6. Geoffrey G. Bell & Akbar Zaheer, 2007. "Geography, Networks, and Knowledge Flow," Organization Science, INFORMS, vol. 18(6), pages 955-972, December.
    7. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2009. "Do New Economic Geography agglomeration shadows underlie current population dynamics across the urban hierarchy?," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 445-466, June.
    8. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1.
    9. Bjørn Asheim & Lars Coenen, 2006. "Contextualising Regional Innovation Systems in a Globalising Learning Economy: On Knowledge Bases and Institutional Frameworks," The Journal of Technology Transfer, Springer, vol. 31(1), pages 163-173, January.
    10. Verginer, Luca & Riccaboni, Massimo, 2021. "Talent goes to global cities: The world network of scientists’ mobility," Research Policy, Elsevier, vol. 50(1).
    11. Pierre-Alexandre Balland & David Rigby & Ron Boschma, 2015. "The technological resilience of US cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 167-184.
    12. Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, vol. 51(5), pages 756-770, May.
    13. Ejermo, Olof & Karlsson, Charlie, 2006. "Interregional inventor networks as studied by patent coinventorships," Research Policy, Elsevier, vol. 35(3), pages 412-430, April.
    14. Bronwyn Hall & Christian Helmers & Mark Rogers & Vania Sena, 2014. "The Choice between Formal and Informal Intellectual Property: A Review," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 375-423, June.
    15. René Belderbos & Helen S. Du & Anthony Goerzen, 2017. "Global Cities, Connectivity, and the Location Choice of MNC Regional Headquarters," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1271-1302, December.
    16. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 2020. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1199-1222, October.
    17. Anthony Goerzen & Christian Geisler Asmussen & Bo Bernhard Nielsen, 2013. "Global cities and multinational enterprise location strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(5), pages 427-450, June.
    18. Caroline Hussler, 2004. "Culture and knowledge spillovers in Europe: New perspectives for innovation and convergence policies?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(6), pages 523-541.
    19. Niccolò Innocenti & Francesco Capone & Luciana Lazzeretti, 2020. "Knowledge networks and industrial structure for regional innovation: An analysis of patents collaborations in Italy," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 55-72, February.
    20. Deyle, Hanno-G. & Grupp, Hariolf, 2005. "Commuters and the regional assignment of innovative activities: A methodological patent study of German districts," Research Policy, Elsevier, vol. 34(2), pages 221-234, March.
    21. William B. Beyers, 2005. "Services and the changing economic base of regions in the united states," The Service Industries Journal, Taylor & Francis Journals, vol. 25(4), pages 461-476, June.
    22. S. Trevis Certo & John R. Busenbark & Hyun‐soo Woo & Matthew Semadeni, 2016. "Sample selection bias and Heckman models in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2639-2657, December.
    23. Evert Meijers & Martijn Burger & Evert J. Meijers & Martijn J. Burger & Marloes M. Hoogerbrugge, 2016. "Borrowing size in networks of cities: City size, network connectivity and metropolitan functions in Europe," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 181-198, March.
    24. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 893-920, December.
    25. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Juan Alcácer & Minyuan Zhao, 2016. "Zooming in: A practical manual for identifying geographic clusters," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 10-21, January.
    26. De Noni, Ivan & Orsi, Luigi & Belussi, Fiorenza, 2018. "The role of collaborative networks in supporting the innovation performances of lagging-behind European regions," Research Policy, Elsevier, vol. 47(1), pages 1-13.
    27. Ben Derudder & Peter J. Taylor, 2018. "Central flow theory: comparative connectivities in the world-city network," Regional Studies, Taylor & Francis Journals, vol. 52(8), pages 1029-1040, August.
    28. Ron Boschma & Koen Frenken, 2010. "The Spatial Evolution of Innovation Networks: A Proximity Perspective," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 5, Edward Elgar Publishing.
    29. Belderbos, René & Du, Helen S. & Slangen, Arjen, 2020. "When do firms choose global cities as foreign investment locations within countries? The roles of contextual distance, knowledge intensity, and target-country experience," Journal of World Business, Elsevier, vol. 55(1).
    30. Basberg, Bjorn L., 1987. "Patents and the measurement of technological change: A survey of the literature," Research Policy, Elsevier, vol. 16(2-4), pages 131-141, August.
    31. William Beyers, 2003. "On the geography of the new economy: perspectives from the United States," The Service Industries Journal, Taylor & Francis Journals, vol. 23(1), pages 4-26, January.
    32. Thomas Lindner & Jonas Puck & Alain Verbeke, 2020. "Misconceptions about multicollinearity in international business research: Identification, consequences, and remedies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 283-298, April.
    33. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
    34. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    35. René A. Belderbos & Michał Kazimierczak & Micheline Goedhuys, 2022. "Trademarks, patents and the appropriation strategies of incumbents: the scope of new firm formation in European regions," Regional Studies, Taylor & Francis Journals, vol. 56(2), pages 210-226, February.
    36. Lee Fleming & Charles King & Adam I. Juda, 2007. "Small Worlds and Regional Innovation," Organization Science, INFORMS, vol. 18(6), pages 938-954, December.
    37. Mario A. Maggioni & Mario Nosvelli & Teodora Erika Uberti, 2007. "Space versus networks in the geography of innovation: A European analysis," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 471-493, August.
    38. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    39. Caroline Hussler, 2004. "Culture and knowledge spillovers in Europe : new perspectives for innovation and convergence policies ?," Post-Print hal-00278985, HAL.
    40. Stefano Breschi & Camilla Lenzi, 2015. "The Role of External Linkages and Gatekeepers for the Renewal and Expansion of US Cities' Knowledge Base, 1990-2004," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 782-797, May.
    41. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    42. Don J. Webber & Adrian Healy & Gillian Bristow, 2018. "Regional Growth Paths and Resilience: A European Analysis," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 355-375, August.
    43. Mario Polèse & Richard Shearmur, 2006. "Why some regions will decline: A Canadian case study with thoughts on local development strategies," Papers in Regional Science, Wiley Blackwell, vol. 85(1), pages 23-46, March.
    44. Griliches, Zvi, 1998. "R&D and Productivity," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226308869, September.
    45. Edward L. Glaeser, 2017. "Real Estate Bubbles and Urban Development," Asian Development Review, MIT Press, vol. 34(2), pages 114-151, September.
    46. Ben Derudder & Peter J. Taylor, 2020. "Three Globalizations Shaping the Twenty-first Century: Understanding the New World Geography through Its Cities," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 110(6), pages 1831-1854, November.
    47. Frank van der Wouden, 2020. "A history of collaboration in US invention: changing patterns of co-invention, complexity and geography," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(3), pages 599-619.
    48. Barnard, Helena & Chaminade, Cristina, 2011. "Global Innovation Networks: what are they and where can we find them? (Conceptual and Empirical issues)," Papers in Innovation Studies 2011/4, Lund University, CIRCLE - Centre for Innovation Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benoit, Florence & Belderbos, René, 2024. "International connection, local disconnection: The (heterogeneous) role of global cities in local and global innovation networks," Journal of International Management, Elsevier, vol. 30(3).
    2. Niccolò Innocenti & Francesco Capone & Luciana Lazzeretti & Sergio Petralia, 2022. "The role of inventors’ networks and variety for breakthrough inventions," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 37-57, February.
    3. Francesco Capone & Luciana Lazzeretti & Niccolò Innocenti, 2021. "Innovation and diversity: the role of knowledge networks in the inventive capacity of cities," Small Business Economics, Springer, vol. 56(2), pages 773-788, February.
    4. Pierre-Alexandre Balland & Ron Boschma & Julien Ravet, 2019. "Network dynamics in collaborative research in the EU, 2003–2017," European Planning Studies, Taylor & Francis Journals, vol. 27(9), pages 1811-1837, September.
    5. van der Wouden, Frank & Youn, Hyejin, 2023. "The impact of geographical distance on learning through collaboration," Research Policy, Elsevier, vol. 52(2).
    6. Der-Shiuan Lee, 2018. "Towards Urban Resilience through Inter-City Networks of Co-Invention: A Case Study of U.S. Cities," Sustainability, MDPI, vol. 10(2), pages 1-23, January.
    7. Chakravarty, Dwarka & Goerzen, Anthony & Musteen, Martina & Ahsan, Mujtaba, 2021. "Global cities: A multi-disciplinary review and research agenda," Journal of World Business, Elsevier, vol. 56(3).
    8. Miguélez, Ernest & Moreno, Rosina, 2015. "Knowledge flows and the absorptive capacity of regions," Research Policy, Elsevier, vol. 44(4), pages 833-848.
    9. René Belderbos & Helen S. Du & Anthony Goerzen, 2017. "Global Cities, Connectivity, and the Location Choice of MNC Regional Headquarters," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1271-1302, December.
    10. Abbasiharofteh, Milad & Kinne, Jan & Krüger, Miriam, 2021. "The strength of weak and strong ties in bridging geographic and cognitive distances," ZEW Discussion Papers 21-049, ZEW - Leibniz Centre for European Economic Research.
    11. Abbasiharofteh, Milad & Kogler, Dieter F. & Lengyel, Balázs, 2023. "Atypical combinations of technologies in regional co-inventor networks," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(10), pages 1-1.
    12. Der-Shiuan Lee & Breandán Ó Huallacháin, 2012. "Spatial Network-based and Regional Proximity in US Biotechnology," Chapters, in: Marina van Geenhuizen & Peter Nijkamp (ed.), Creative Knowledge Cities, chapter 12, Edward Elgar Publishing.
    13. Gergő Tóth & Sándor Juhász & Zoltán Elekes & Balázs Lengyel, 2021. "Repeated collaboration of inventors across European regions," European Planning Studies, Taylor & Francis Journals, vol. 29(12), pages 2252-2272, December.
    14. José Manuel López‐Fernández & Mariluz Maté‐Sánchez‐Val & Francisco Manuel Somohano‐Rodriguez, 2021. "The effect of micro‐territorial networks on industrial small and medium enterprises' innovation: A case study in the Spanish region of Cantabria," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 51-77, February.
    15. Ron Boschma & Pierre-Alexandre Balland & Dieter Kogler, 2011. "A relational approach to knowledge spillovers in biotech. Network structures as drivers of inter-organizational citation patterns," Papers in Evolutionary Economic Geography (PEEG) 1120, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2011.
    16. Barbosa, Sergio & Sáiz, Patricio & Zofío, José L., 2024. "The emergence and historical evolution of innovation networks: On the factors promoting and hampering patent collaboration in technological lagging economies," Research Policy, Elsevier, vol. 53(5).
    17. Araki, Michael E. & Bennett, Daniel L. & Wagner, Gary A., 2024. "Regional innovation networks & high-growth entrepreneurship," Research Policy, Elsevier, vol. 53(1).
    18. De Noni, Ivan & Orsi, Luigi & Belussi, Fiorenza, 2018. "The role of collaborative networks in supporting the innovation performances of lagging-behind European regions," Research Policy, Elsevier, vol. 47(1), pages 1-13.
    19. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    20. Laurent R. Bergé, 2017. "Network proximity in the geography of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 785-815, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:101:y:2022:i:4:p:979-999. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.