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Jurisdictional Advantage

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  • Maryann Feldman
  • Roger Martin

Abstract

Our objective in this paper is to define jurisdictional advantage, the recognition that location is critical to firms' innovative success and that every location has unique assets that are not easily replicated. The purpose is to be normative and policy oriented. Drawing from the well-developed literature on corporate strategy, we consider analogies to cities in their search for competitive advantage. In contrast to the more passive term locational advantage, our use of the term jurisdiction denotes geographically-defined legal and political decision-making authority and coordination. Thus, jurisdictions may be constructed and managed to promote a coherent activity set. We review recent advances in our understanding of patterns of urban specialization and the composition of activities within cities, which suggest strategies that may generate economic growth as well as those strategies to avoid. This paper then considers the role of firms and their responsibility to jurisdictions in light of the net benefits received from place-specific externalities, and concludes by considering the challenges to implementing jurisdictional advantage.

Suggested Citation

  • Maryann Feldman & Roger Martin, 2004. "Jurisdictional Advantage," NBER Working Papers 10802, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10802
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    References listed on IDEAS

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    Cited by:

    1. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank.
    2. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    3. Pedro Valadas Monteiro & Teresa de Noronha & Paulo Neto, 2012. "The Idiosyncratic Nature Of Maritime Clusters:Considerations For Their Possible Differentiation," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 7-38.
    4. Simona Iammarino & Cecilia Jona-Lasini & Susanna Mantegazza, 2004. "Labour productivity, ICT and regions: The revival of Italian “dualism”?," SPRU Working Paper Series 127, SPRU - Science Policy Research Unit, University of Sussex Business School.

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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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