IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v55y2015i1p157-185.html
   My bibliography  Save this article

Market potential and the employment growth of knowledge-intensive services: comparing different geographical resolutions

Author

Listed:
  • Johan Klaesson
  • Therese Norman

Abstract

In order to empirically understand the geographical reach of different markets, it is vital to use an appropriate geographical resolution. Using too large observational units risks hiding the interesting relationships within the regional boundaries. In this study, we aim to investigate and compare similar analyses performed on different geographical levels, with a special focus on innovative industries. Accessibility to markets, services and infrastructure is thought to be major determinants of the potential for economic development and welfare of a region. Earlier empirical research establishing the relationship between agglomeration forces and regional growth typically includes a measure for accessibility or market potential as an explanatory factor. The geographical scale that conventional accessibility measures operate on is usually on the level of municipalities or similar, even when theory suggests that a more disaggregated scale is desirable. Most often the reason for this is limitations in available data. In many cases, the researcher is left with a geographical level based on administrative borders. Analyses on more disaggregated levels allow the researcher to better pinpoint the actual accessibility that each firm faces. In order to shed light on the importance of these issues, this paper utilizes an exploratory approach to investigate the relationship between the spatial distribution and growth of knowledge-intensive services (KIS) and the accessibility to economic activity (market potential). We use regional employment growth in KIS as a proxy for regional innovativeness. The relationship is estimated on two different geographical levels using Swedish data. The more conventional model is estimated with the 290 municipalities in Sweden as the units of analysis. In the Swedish context, this represents the geographically smallest administrative level. In the more novel model, we use the 298 so-called SAMS areas of Jönköping County in Sweden. Our results show that the detailed level is particularly important for the analysis of the growth of the more advanced sectors of the economy, in our setting, the high-tech knowledge-intensive services. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Johan Klaesson & Therese Norman, 2015. "Market potential and the employment growth of knowledge-intensive services: comparing different geographical resolutions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 157-185, October.
    • Handle: RePEc:spr:anresc:v:55:y:2015:i:1:p:157-185
    DOI: 10.1007/s00168-015-0701-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00168-015-0701-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00168-015-0701-1?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Simone Strambach, 2002. "Change in the Innovation Process: New Knowledge Production and Competitive Cities--The Case of Stuttgart," European Planning Studies, Taylor & Francis Journals, vol. 10(2), pages 215-231, March.
    2. Autant-Bernard, Corinne & Fadairo, Muriel & Massard, Nadine, 2013. "Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence," Research Policy, Elsevier, vol. 42(1), pages 196-210.
    3. Börje Johansson & Johan Klaesson & Michael Olsson, 2002. "Time distances and labor market integration," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 305-327.
    4. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 975-1005, December.
    5. Knut Koschatzky & Thomas Stahlecker, 2004. "On the significance of geographical proximity for the structure and development of newly founded knowledge-intensive business service firms," ERSA conference papers ersa04p295, European Regional Science Association.
    6. Cowan, Robin & David, Paul A & Foray, Dominique, 2000. "The Explicit Economics of Knowledge Codification and Tacitness," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(2), pages 211-253, June.
    7. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," The Service Industries Journal, Taylor & Francis Journals, vol. 28(3), pages 291-306, April.
    8. Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
    9. Peter Wood, 2005. "A service-informed approach to regional innovation -- or adaptation?," The Service Industries Journal, Taylor & Francis Journals, vol. 25(4), pages 429-445, June.
    10. Martin Andersson & Charlie Karlsson, 2007. "Knowledge in Regional Economic Growth—The Role of Knowledge Accessibility," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 129-149.
    11. Karlsson, Charlie & Norman, Therese, 2013. "Intra-triad Knowledge Flows," Working Paper Series in Economics and Institutions of Innovation 323, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    12. Martin Andersson & Karin Hellerstedt, 2009. "Location Attributes and Start-ups in Knowledge-Intensive Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 16(1), pages 103-121.
    13. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    14. Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
    15. Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), 2001. "Theories of Endogenous Regional Growth," Advances in Spatial Science, Springer, number 978-3-642-59570-7, december.
    16. Sam Tavassoli & Nunzia Carbonara, 2014. "The role of knowledge variety and intensity for regional innovation," Small Business Economics, Springer, vol. 43(2), pages 493-509, August.
    17. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," Post-Print hal-02391302, HAL.
    18. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    19. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    20. Stahlecker, Thomas & Koschatzky, Knut, 2004. "On the significance of geographical proximity for the structure and development of newly founded knowledge-intensive business service firms," Working Papers "Firms and Region" R2/2004, Fraunhofer Institute for Systems and Innovation Research (ISI).
    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. Brunow, Stephan & Hammer, Andrea & McCann, Philip, 2017. "Innovation and location in German knowledge intensive business service firms," IAB-Discussion Paper 201722, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Malgorzata Juchniewicz, 2021. "Factor Competitiveness of the Technological Advanced Services Sector in the European Union Countries: A Typological Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 260-273.
    3. repec:ers:journl:v:xxiv:y:2021:i:special3:p:260-273 is not listed on IDEAS
    4. Shinya Fukui, 2020. "Firm Agglomeration in Knowledge Intensive Business Service Sectors," Discussion Papers 2008, Graduate School of Economics, Kobe University.

    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. Ana Condeço-Melhorado & Aura Reggiani & Javier Gutiérrez (ed.), 2014. "Accessibility and Spatial Interaction," Books, Edward Elgar Publishing, number 15267.
    2. Sofia Wixe, 2015. "The Impact of Spatial Externalities: Skills, Education and Plant Productivity," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 2053-2069, December.
    3. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
    4. Olof Ejermo & Urban Gråsjö, 2014. "Accessibility to R&D: a re-examination of the consequences for invention and innovation," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 3, pages 51-79, Edward Elgar Publishing.
    5. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    6. Michael Wyrwich, 2011. "Knowledge intensive Entrepreneurship across regions: Makes being a new industry a difference?," ERSA conference papers ersa11p1711, European Regional Science Association.
    7. Urban Gråsjö & Charlie Karlsson, 2014. "Accessibility: an underused analytical and empirical tool in spatial economics," Chapters, in: Ana Condeço-Melhorado & Aura Reggiani & Javier Gutiérrez (ed.), Accessibility and Spatial Interaction, chapter 11, pages 211-236, Edward Elgar Publishing.
    8. repec:elg:eechap:14395_20 is not listed on IDEAS
    9. Mikaela Backman, 2014. "Human capital in firms and regions: Impact on firm productivity," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 557-575, August.
    10. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427.
    11. Zoltán Bujdosó & János Pénzes & Lóránt Dávid & Szilárd Madaras, 2016. "The Spatial Pattern of KIBS and their Relations with the Territorial Development in Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(41), pages 1-73, February.
    12. Grillitsch, Markus & Nilsson , Magnus, 2013. "Technological competencies and firm performance: Analyzing the importance of internal and external competencies," Papers in Innovation Studies 2013/24, Lund University, CIRCLE - Centre for Innovation Research.
    13. Martin Andersson & Charlie Karlsson, 2004. "The role of accessibility for the performance of regional innovation systems," Chapters, in: Charlie Karlsson & Per Flensburg & Sven-Åke Hörte (ed.), Knowledge Spillovers and Knowledge Management, chapter 10, pages 283-310, Edward Elgar Publishing.
    14. Matthias Duschl & Tobias Scholl & Thomas Brenner & Dennis Luxen & Falk Raschke, 2015. "Industry-Specific Firm Growth and Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1822-1839, November.
    15. Gunther Maier & Patrick Lehner, 2002. "Does space finally matter? The position of New Economic Geography in Economic Journals," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2002(1).
    16. Börje Johansson & Johan Klaesson, 2011. "Agglomeration dynamics of business services," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 373-391, October.
    17. Charlie Karlsson & Gunther Maier & Michaela Trippl & Iulia Siedschlag & Gavin Murphy, 2010. "ICT and Regional Economic Dynamics: A Literature Review," JRC Research Reports JRC59920, Joint Research Centre.
    18. Andersson, Martin & Johansson, Sara, 2010. "Human capital and the structure of regional export flows," Technology in Society, Elsevier, vol. 32(3), pages 230-240.
    19. Raffaele Paci & Emanuela Marrocu & Stefano Usai, 2014. "The Complementary Effects of Proximity Dimensions on Knowledge Spillovers," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 9-30, March.
    20. Sam Tavassoli & Lars Bengtsson & Charlie Karlsson, 2017. "Strategic entrepreneurship and knowledge spillovers: spatial and aspatial perspectives," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 233-249, March.
    21. Ferreira, João J.M. & Fernandes, Cristina I. & Veiga, Pedro Mota, 2024. "The effects of knowledge spillovers, digital capabilities, and innovation on firm performance: A moderated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

    More about this item

    Keywords

    C21; L84; R11; R12;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    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:spr:anresc:v:55:y:2015:i:1:p:157-185. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.