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The Dependence of Innovativeness on the Local Firm Population—An Empirical Study of German Patents

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  • Thomas Brenner
  • Siegfried Greif

Abstract

Local clusters and the co-location of firms are repeatedly related to a high level of innovativeness in the literature. The underlying argument is that firms that are co-located with other firms of the same industry undertake more innovation than “lonely” firms because of spillovers, local labour markets and cooperations. These arguments are tested here for four industries in Germany. To this end, four different hypotheses about the impact of co-location on the innovativeness of firms are formulated and empirically compared. The results show that the innovativeness of firms indeed depends on the existence of other firms in the same region. However, the relationship between co-location and innovation output depends on the industry studied.

Suggested Citation

  • Thomas Brenner & Siegfried Greif, 2006. "The Dependence of Innovativeness on the Local Firm Population—An Empirical Study of German Patents," Industry and Innovation, Taylor & Francis Journals, vol. 13(1), pages 21-39.
    • Handle: RePEc:taf:indinn:v:13:y:2006:i:1:p:21-39
    DOI: 10.1080/13662710500513409
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    References listed on IDEAS

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    1. Thomas Brenner, 2006. "Identification of Local Industrial Clusters in Germany," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 991-1004.
    2. Catherine Beaudry & Stefano Breschi, 2000. "Does 'Clustering' really help firms'innovative activities?," KITeS Working Papers 111, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2000.
    3. Michael J. Orlando, 2000. "On the importance of geographic and technological proximity for R&D spillovers : an empirical investigation," Research Working Paper RWP 00-02, Federal Reserve Bank of Kansas City.
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    Cited by:

    1. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    2. Tom Broekel & Thomas Brenner, 2005. "Local Factors and Innovativeness – An Empirical Analysis of German Patents for Five Industries," Papers on Economics and Evolution 2005-09, Philipps University Marburg, Department of Geography.
    3. Brenner Thomas, 2008. "Cluster dynamics and policy implications," ZFW – Advances in Economic Geography, De Gruyter, vol. 52(1), pages 146-162, October.
    4. Dienes, Christian & Schneck, Stefan & Wolter, Hans-Jürgen, 2018. "Die Auswirkungen des Gründungsgeschehens auf das regionale Wirtschaftswachstum," IfM-Materialien 270, Institut für Mittelstandsforschung (IfM) Bonn.
    5. Tom Broekel & Thomas Brenner, 2011. "Regional factors and innovativeness: an empirical analysis of four German industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 169-194, August.
    6. Degner, Harald, 2010. "Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness?," FZID Discussion Papers 15-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    7. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economics Research Papers 2007-065, Friedrich-Schiller-University Jena.

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