IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v41y2018i3p335-363.html
   My bibliography  Save this article

Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks

Author

Listed:
  • Syed Hasan
  • Alessandra Faggian
  • H. Allen Klaiber
  • Ian Sheldon

Abstract

Agglomeration spillovers are a major driver of policy creating science parks across the world. However, agglomeration benefits may be offset by competition arising out of spatial proximity of firms. Analysis of Taiwanese firms’ total factor productivity distribution shows that, depending on location choice, the impact of agglomeration and selection is heterogeneous across firm types. Spatial analysis is applied to evaluate the regional innovation policy of establishing science parks. A sectoral analysis of productivity distributions reveals that there is a positive relationship between technology intensity of the production process and firm productivity levels when firms are located in science parks.

Suggested Citation

  • Syed Hasan & Alessandra Faggian & H. Allen Klaiber & Ian Sheldon, 2018. "Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks," International Regional Science Review, , vol. 41(3), pages 335-363, May.
    • Handle: RePEc:sae:inrsre:v:41:y:2018:i:3:p:335-363
    DOI: 10.1177/0160017616642822
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017616642822
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0160017616642822?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. Okubo, Toshihiro & Tomiura, Eiichi, 2012. "Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 230-239.
    2. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    3. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2015. "Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 39-67, November.
    4. Francesca Mameli & Alessandra Faggian & Philip Mccann, 2014. "Estimation of Local Employment Growth: Do Sectoral Aggregation and Industry Definition Matter?," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1813-1828, November.
    5. Jan De Loecker, 2011. "Product Differentiation, Multiproduct Firms, and Estimating the Impact of Trade Liberalization on Productivity," Econometrica, Econometric Society, vol. 79(5), pages 1407-1451, September.
    6. ARIMOTO Yutaka & NAKAJIMA Kentaro & OKAZAKI Tetsuji, 2010. "Agglomeration or Selection? The Case of the Japanese Silk-reeling Industry, 1909-1916," Discussion papers 10003, Research Institute of Economy, Trade and Industry (RIETI).
    7. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    8. Richard E. Baldwin & Toshihiro Okubo, 2006. "Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 323-346, June.
    9. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Public support to clusters: A firm level study of French "Local Productive Systems"," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 108-123, March.
    10. Fogarty, Michael S. & Garofalo, Gasper A., 1988. "Urban spatial structure and productivity growth in the manufacturing sector of cities," Journal of Urban Economics, Elsevier, vol. 23(1), pages 60-70, January.
    11. Okubo, Toshihiro & Picard, Pierre M. & Thisse, Jacques-François, 2010. "The spatial selection of heterogeneous firms," Journal of International Economics, Elsevier, vol. 82(2), pages 230-237, November.
    12. OKUBO Toshihiro & Rikard FORSLID, 2010. "Spatial Relocation with Heterogeneous Firms and Heterogeneous Sectors," Discussion papers 10056, Research Institute of Economy, Trade and Industry (RIETI).
    13. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
    14. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    15. Phillip Phan & Donald S. Siegel & Mike Wright, 2016. "Science Parks and Incubators: Observations, Synthesis and Future Research," World Scientific Book Chapters, in: Phillip H Phan & Sarfraz A Mian & Wadid Lamine (ed.), TECHNOLOGY ENTREPRENEURSHIP AND BUSINESS INCUBATION Theory • Practice • Lessons Learned, chapter 9, pages 249-272, World Scientific Publishing Co. Pte. Ltd..
    16. Baldwin, Richard & Okubo, Toshihiro, 2004. "Heterogeneous Firms, Agglomeration and Economic Geography: Selection and Sorting," CEPR Discussion Papers 4602, C.E.P.R. Discussion Papers.
    17. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    18. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
    19. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-1150, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alberto Albahari & Andrés Barge-Gil & Salvador Pérez-Canto & Paolo Landoni, 2023. "The effect of science and technology parks on tenant firms: a literature review," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1489-1531, August.
    2. Lu Zhang & Renyan Mu & Shuhua Hu & Quan Zhang & Song Wang, 2021. "Impacts of Manufacturing Specialized and Diversified Agglomeration on the Eco-Innovation Efficiency—A Nonlinear Test from Dynamic Perspective," Sustainability, MDPI, vol. 13(7), pages 1-27, March.
    3. Liao, Tailai & Yan, Jingdong & Zhang, Qiuhong, 2024. "The impact of green technology innovation on carbon emission efficiency: The intermediary role of intellectual capital," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 520-532.
    4. Daguo Lv & Lingyu Zhang & Ren Lu & Jingtao Yao, 2022. "Industry characteristics and agglomeration of heterogeneous firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(1), pages 31-49, March.
    5. Shengjun Zhu & Canfei He & Xinming Xia, 2019. "Geography of productivity: evidence from China’s manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 141-168, February.
    6. Chun‐Yu Ho & Yue Sheng, 2022. "Productivity advantage of large cities for creative industries," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1289-1306, December.
    7. Antonio Andrés Bellofatto & Begoña Domínguez & Elyse C. Dwyer, 2023. "Uncovering Urban Advantages: Evidence from Australian Firm‐Level Data," The Economic Record, The Economic Society of Australia, vol. 99(S1), pages 13-34, December.

    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. David Martín-Barroso & Juan A. Núñez & Francisco J. Velázquez, 2013. "The Effect On Firms' Productivity Of Accessibility. The Spanish Manufacturing Sector," ERSA conference papers ersa13p1123, European Regional Science Association.
    2. Valter Di Giacinto & Matteo Gomellini & Giacinto Micucci & Marcello Pagnini, 2014. "Mapping local productivity advantages in Italy: industrial districts, cities or both?," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 365-394.
    3. Gornig, Martin & Schiersch, Alexander, 2019. "Agglomeration economies and firm TFP: different effects across industries," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203597, Verein für Socialpolitik / German Economic Association.
    4. Antonio Accetturo & Valter Di Giacinto & Giacinto Micucci & Marcello Pagnini, 2018. "Geography, productivity, and trade: Does selection explain why some locations are more productive than others?," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 949-979, November.
    5. Tomlin, Ben, 2014. "Exchange rate fluctuations, plant turnover and productivity," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 12-28.
    6. Syed Hasan & H. Allen Klaiber & Ian Sheldon, 2020. "The impact of science parks on small- and medium-sized enterprises’ productivity distributions: the case of Taiwan and South Korea," Small Business Economics, Springer, vol. 54(1), pages 135-153, January.
    7. Laura Alfaro & Maggie X. Chen, 2013. "Market Reallocation and Knowledge Spillover: The Gains from Multinational Production," Working Papers 2013-13, The George Washington University, Institute for International Economic Policy.
    8. Flora Bellone & Patrick Musso & Lionel Nesta & Frederic Warzynski, 2016. "International trade and firm-level markups when location and quality matter," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 67-91.
    9. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.
    10. Ito, Banri & Xu, Zhaoyuan & Yashiro, Naomitsu, 2015. "Does agglomeration promote internationalization of Chinese firms?," China Economic Review, Elsevier, vol. 34(C), pages 109-121.
    11. Bena Jan & Ondko Peter & Vourvachaki Evangelia, 2011. "Productivity Gains from Services Liberalization in Europe," EERC Working Paper Series 11/15e, EERC Research Network, Russia and CIS.
    12. Jan De Loecker & Frederic Warzynski, 2012. "Markups and Firm-Level Export Status," American Economic Review, American Economic Association, vol. 102(6), pages 2437-2471, October.
    13. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    14. Chang Xu & Jianbing Guo & Baodong Cheng & Yu Liu, 2019. "Exports, Misallocation, and Total Factor Productivity of Furniture Enterprises," Sustainability, MDPI, vol. 11(18), pages 1-14, September.
    15. Jan De Loecker & Pinelopi K. Goldberg & Amit K. Khandelwal & Nina Pavcnik, 2016. "Prices, Markups, and Trade Reform," Econometrica, Econometric Society, vol. 84, pages 445-510, March.
    16. Florin Maican & Matilda Orth, 2017. "Productivity Dynamics and the Role of ‘Big-Box’ Entrants in Retailing," Journal of Industrial Economics, Wiley Blackwell, vol. 65(2), pages 397-438, June.
    17. Matthias Kehrig, 2011. "The Cyclicality of Productivity Dispersion," 2011 Meeting Papers 484, Society for Economic Dynamics.
    18. Marian Rizov & Xufei Zhang, 2014. "Regional disparities and productivity in China: Evidence from manufacturing micro data," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 321-339, June.
    19. Daguo Lv & Lingyu Zhang & Ren Lu & Jingtao Yao, 2022. "Industry characteristics and agglomeration of heterogeneous firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(1), pages 31-49, March.
    20. Ehrl, Philipp, 2013. "Agglomeration economies with consistent productivity estimates," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 751-763.

    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:sae:inrsre:v:41:y:2018:i:3:p:335-363. 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: SAGE Publications (email available below). General contact details of provider: .

    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.