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What When Space Matters Little For Firm Productivity? A multilevel analysis of localised knowledge externalities

Author

Listed:
  • Otto Raspe
  • Frank van Oort

Abstract

This paper contributes to the debate on localized knowledge externalities as potential source for firm productivity gains. We apply multilevel analysis to link firm productivity (and growth) to knowledge intensive spatial contexts in the Netherlands. If localized knowledge externalities are important, then firms are hypothesised to co-locate in order to capitalize on each other's knowledge stocks. We conceptualise the regional knowledge base by three dimensions: local 'research and development' intensity, local 'innovativeness', and the characterization of locations by a ‘knowledge workers’ dimension (based on ICT use, educational level, communicative and creative skills). Controlling for firm's heterogeneity, we find a relatively small spatial effect: regional characteristics contribute for only a few percents to firm productivity. The regional intensity of 'innovation' most significantly contributes to this effect. We do not find a contextual spatial effect for productivity growth. These results suggest that the territorial dimension of knowledge externalities should not be exaggerated.

Suggested Citation

  • Otto Raspe & Frank van Oort, 2007. "What When Space Matters Little For Firm Productivity? A multilevel analysis of localised knowledge externalities," Papers in Evolutionary Economic Geography (PEEG) 0706, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2007.
    • Handle: RePEc:egu:wpaper:0706
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    File URL: http://econ.geo.uu.nl/peeg/peeg0706.pdf
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    Citations

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    Cited by:

    1. Francesco Aiello & Fernanda Ricotta, 2014. "Firm heterogeneity in productivity across Europe. What explains what?," ERSA conference papers ersa14p808, European Regional Science Association.
    2. Fernanda Ricotta, 2016. "Productivity Differences By Export Destination," Working Papers 201601, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    3. Daniel Sanchez-Serra, 2014. "Talent and Creative Economy in French Local Labour Systems," Environment and Planning C, , vol. 32(3), pages 405-425, June.
    4. Giorgio Fazio & Davide Piacentino, 2010. "A Spatial Multilevel Analysis of Italian SMEs' Productivity," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(3), pages 299-316.
    5. Grace Carolina Guevara‐Rosero, 2021. "Determinants of manufacturing micro firms' productivity in Ecuador. Do industry and canton where they operate matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1215-1248, August.
    6. Martin Srholec, 2010. "A Multilevel Approach to Geography of Innovation," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1207-1220.
    7. Anna Ferragina & Fernanda Mazzotta, 2015. "Agglomeration economies in Italy: impact on heterogeneous firms’ exit in a multilevel framework," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 395-440, December.
    8. Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2013. "The age-productivity pattern: Do location and sector affiliation matter?," The Journal of the Economics of Ageing, Elsevier, vol. 1, pages 72-82.
    9. Christian K. Darko & Giovanni Occhiali & Enrico Vanino, 2018. "The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa," Working Papers 2018.14, Fondazione Eni Enrico Mattei.
    10. Cristina Bernini & Alessandro Tampieri, 2017. "The Happiness Function in Italian Cities," DEM Discussion Paper Series 17-07, Department of Economics at the University of Luxembourg.
    11. Roberto Cellini & Gianpiero Torrisi, 2014. "Regional Resilience in Italy: A Very Long-Run Analysis," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1779-1796, November.

    More about this item

    Keywords

    productivity; multilevel analysis; localized knowledge externalities; Netherlands;
    All these keywords.

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