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Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany

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  • Werner Bonte

Abstract

This article investigates the impact of various agglomeration forces on employment and innovation for a sample of aeronautical cluster firms in Northern Germany and a control group of geographically dispersed aeronautical firms in other German regions. The findings suggest that employment growth is positively affected by labor market pooling but this effect is not cluster-specific. The firms' probability of innovating is positively influenced by knowledge flows from proximate scientific institutions and public information sources as well as demanding local customers. However, only the effect of demanding customers is cluster-specific.

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  • Werner Bonte, 2004. "Innovation and employment growth in industrial clusters: evidence from aeronautical firms in Germany," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(3), pages 259-278.
    • Handle: RePEc:taf:ijecbs:v:11:y:2004:i:3:p:259-278
    DOI: 10.1080/1357151042000286393
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    Cited by:

    1. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    2. Justin Doran & Declan Jordan, 2016. "Cross-sectoral differences in the drivers of innovation," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 719-748, October.
    3. David Smith & Gamal Ibrahim, 2006. "Cluster Dynamics: Corporate Strategy, Industry Evolution and Technology Trajectories - A Case Study of the East Midlands Aerospace Cluster," Local Economy, London South Bank University, vol. 21(4), pages 362-377, November.
    4. Ali, Hoda Abd El Hamid, 2011. "Universities, Industrial Clusters, and Economic Development in Egypt," MPRA Paper 60111, University Library of Munich, Germany, revised 2012.
    5. Anke Kutschke & Alexandra Rese & Daniel Baier, 2016. "The Effects of Locational Factors on the Performance of Innovation Networks in the German Energy Sector," Sustainability, MDPI, vol. 8(12), pages 1-18, December.
    6. Thomas Brenner & Andreas Gildner, 2006. "The long-term Implications of Local Industrial Clusters," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1315-1328, June.
    7. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
    8. Abdurrahman Mete Yazan, 2013. "Do Social Factors Matter for Innovation, and Do They Influence Innovation in Aeronautics Industry?," IET Working Papers Series 05/2013, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology.
    9. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
    10. Silviya Draganinska & Rudiger Wink, 2006. "Formal Knowledge Examination Institutions: Chance Or Threat to European Medium Tech-Nology SMEs? A Cognitive and Institutional Perspective," ERSA conference papers ersa06p404, European Regional Science Association.
    11. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.

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    More about this item

    Keywords

    Industrial Clusters; Innovation; Firm Performance; Aerospace; JEL Classifications: L62; O30; R12;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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