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The Origin and Location of Entrants in the Evolution of the U.S. Tire Industry

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  • G. Buenstorf
  • S. Klepper

Abstract

During its early and formative years, the U.S. tire industry was heavily concentrated around Akron, Ohio. We test the extent to which entrants in Ohio were attracted to the Akron area by agglomeration benefits, contributing to a self-reinforcing process envisioned in many modern theories of geography. We trace the geographic and intellectual heritage of the Ohio entrants and analyze the factors underlying their creation and location at the county level. Our findings suggest it was the creation of entrants, largely spurred by the supply of entrepreneurs, and not the attraction of entrants to the Akron area that fueled the agglomeration of the industry there.

Suggested Citation

  • G. Buenstorf & S. Klepper, 2004. "The Origin and Location of Entrants in the Evolution of the U.S. Tire Industry," Papers on Economics and Evolution 2004-07, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:esi:evopap:2004-07
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    References listed on IDEAS

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    1. J. Myles Shaver & Fredrick Flyer, 2000. "Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States," Strategic Management Journal, Wiley Blackwell, vol. 21(12), pages 1175-1193, December.
    2. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    3. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    4. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
    5. Will Mitchell, 1991. "Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 85-100, February.
    6. Bresnahan,Timothy & Gambardella,Alfonso (ed.), 2004. "Building High-Tech Clusters," Cambridge Books, Cambridge University Press, number 9780521827225, September.
    7. Steven Klepper, 2002. "Firm Survival and the Evolution of Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 37-61, Spring.
    8. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 725-760, August.
    9. Steven Klepper, 2002. "The capabilities of new firms and the evolution of the US automobile industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 645-666, August.
    10. Steven Klepper & Kenneth L. Simons, 2000. "Dominance by birthright: entry of prior radio producers and competitive ramifications in the U.S. television receiver industry," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 997-1016, October.
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    Cited by:

    1. G. Buenstorf, 2005. "How Useful Is Universal Darwinism as a Framework to Study Competition and Industrial Evolution?," Papers on Economics and Evolution 2005-02, Philipps University Marburg, Department of Geography.
    2. Maria José Gil-Moltó & Claudio A. Piga, 2007. "Entry and Exit in a Liberalised Market," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 3-38, January-F.
    3. Ron A. Boschma & Rik Wenting, 2004. "The spatial evolution of the British automobile industry," Papers in Evolutionary Economic Geography (PEEG) 0504, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2004.
    4. Ron A. Boschma & Anet B.R. Weterings, 2005. "The effect of regional differences on the performance of software firms in the Netherlands," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 567-588, October.
    5. Maria José Gil-Moltó & Claudio A. Piga, 2008. "Entry and Exit by European Low-Cost and Traditional Carriers," Tourism Economics, , vol. 14(3), pages 577-598, September.

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    More about this item

    Keywords

    Entry; Location; Agglomerations; Spinoffs;
    All these keywords.

    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other

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