Digital gravity? Firm birth and relocation patterns of young digital firms in Germany

This paper analyses the spatial patterns of young (<10 years) digital firms in Germany between 2008 and 2017 on county level. Determinants of firm birth locations as well as relocations are considered jointly to understand differences in location choices within firms' life cycles. I match commercial register data of 107,321 firms with county-level administrative data to capture local characteristics. Using an OLS model with fixed effects, I find that the local knowledge base—that is, universities, research institutes, and colocated incumbents—are significant key determinants of digital firm birth when controlling for a host of local characteristics. My results indicate that for five firms per 1000 inhabitants, there is around one firm birth. Second, using a fixed effects gravity model for the analysis of relocations, I find that the most dominant explanatory factor for firm relocation across specifications is distance, that is, relocation costs. Relocation flows are more than twice as high to neighboring counties relative to other locations which shows that digital firms are not as footloose as their business model may suggest. Jointly, my results reflect economic activity's regional persistence, particularly for new firms. My paper provides evidence for policies targeting homogenous digital clusters based on strong colocation and that digital economic activity is not shifted over long distances, but the regional entrepreneurship capital is crucial for local growth.     

SPATIAL PRICING IN INTERDEPENDENT MARHETS*

ABSTRACT. Conditions for spatial price equilibrium are derived for a set of firms in oligopolistic spatial competition, distributed at fixed locations in a heterogeneous region where consumer purchasing patterns are a probabilistic function of the price distribution rather than a deterministic function of proximity to firms. The resulting prices vary with accessibility to consumers or with the degree of local spatial monopoly, and result in non-zero profits for firms. Conditions describing the existence and stability properties of this spatial price equilibrium are defined, and are shown to be equivalent for two different hypotheses concerning disequilibrium pricing behavior: a partial price adjustment model and a Bertrand game. For two different profit goals, total profit maximization and profit rate maximization, it is shown that a spatial price equilibrium exists and is at least locally quasi-stable.     

Spatiotemporal Modeling of Correlated Small‐Area Outcomes: Analyzing the Shared and Type‐Specific Patterns of Crime and Disorder

This research applies a Bayesian multivariate modeling approach to analyze the spatiotemporal patterns of physical disorder, social disorder, property crime, and violent crime at the small‐area scale. Despite crime and disorder exhibiting similar spatiotemporal patterns, as hypothesized by broken windows and collective efficacy theories, past studies often analyze a single outcome and overlook the correlation structures between multiple crime and disorder types. Accounting for five covariates, the best‐fitting model partitions the residual risk of each crime and disorder type into one spatial shared component, one temporal shared component, and type‐specific spatial, temporal, and space–time components. The shared components capture the underlying spatial pattern and time trend common to all types of crime and disorder. Results show that population size, residential mobility, and the central business district are positively associated with all outcomes. The spatial shared component is found to explain the largest proportion of residual variability for all types of crime and disorder. Spatiotemporal hotspots of crime and disorder are examined to contextualize broken windows theory. Applications of multivariate spatiotemporal modeling with shared components to ecological crime theories and crime prevention policy are discussed.     

Functional Relations in Distribution Channels and Location Patterns of the Dutch Wholesale Sector

Wholesale firms play an important role in the distribution of goods. They stimulate the flow of goods towards the final consumer by means of their intermediate position between the manufacturing sector and the retail sector in the distribution channel. This paper will focus on the question whether there is a link between the position of wholesale businesses in the distribution channel and their spatial choice of location. Can the position of the wholesale sector in the distribution channel be regarded as an influential location factor or not? As such, the location factor to elaborate is the location with regard to the suppliers and buyers of wholesale firms. First, the change of the spatial pattern over the long term is set out by means of a series of maps. Second, an inquiry has been set out in order to obtain an insight to the position of wholesale firms in the distribution channel. The major findings are that the sectors of repair shops, retail, manufacturing industry and building industry have the most business contacts with wholesale firms. Most business contacts are on a national level. The position of the wholesale sector in the distribution channel alone does not explain the choice of location. But the paper shows that the position is closely linked to other factors, such as accessibility, short distances and centrality.     

The Spatial Patterns of Networks,Hierarchies and Subsidiaries

This article reviews evidence and arguments linking the networking behaviour of firms with geographic distance, before examining the spatial relationships of electronics firms in the three major electronics centres in Spain. The focus is on the spatial pattern and extent of different types of inter-firm relations. Based on the analysis of 184 surveyed establishments, displaying different ownership and organization characteristics, the results show that while regional linkages are important, significant extra-regional linkages are also maintained by firms in regional clusters. The spatial extent of linkages depends on the mode of relations; arm's length, network and hierarchy relations show different spatial patterns, as do different types of cooperation. The importance of extra-regional linkages also varies with firm- and plant-specific characteristics. Extra-regional linkages are more common among larger and more R&D-intensive firms, firms with greater presence in the rest of the country and firms with more experience of cooperation and more stable relationships.     

FIRM SIZES AND ECONOMIC DEVELOPMENT: ESTIMATING LONG‐TERM EFFECTS ON U.S. COUNTY GROWTH, 1990–2000

This paper investigates the role of the business size distribution on income and employment growth in U.S. counties from 1990 to 2000. We measure the business size distribution as the share of employees across nine establishment size categories that range from microfirms (one to four employees) to large firms (1,000+ employees) and using three indices similar to a Gini coefficient. Results show that the business size distribution has a significant impact on county‐level growth patterns. Employment shares in small firms increase employment growth, but decrease income growth. One possible conclusion suggests policies emphasizing small firms and entrepreneurship during times of high unemployment.     

The Location and Concentration of Businesses in Britain: Business Clusters, Business Services, Market Coverage and Local Economic Development

An important debate has recently developed around the significance of business clusters for the development of the economy. This paper assesses the extent to which concentrated clusters of businesses exist in Britain, using the fine spatial mesh of postcode districts. It identifies the major clusters using a development of the methodology to define local labour market areas. The paper demonstrates the high degree of localization and uneven development of businesses in Britain. It also shows that business service firms are even more highly localized and clustered than other businesses. Moreover, the larger the business centre, the more localized and clustered the firms. The pattern suggests that there is a strong influence of increasing returns of scale, and that, as well as local clusters, much of the British economy is covered by one metacluster. Implications from these results are drawn for the likely future development of the economy, the location of business service suppliers in order to develop their market coverage, and local economic development policy.     

Spatial Proximity and Intercompany Communication: Myths and Realities

Abstract

Spatial proximity is credited with numerous virtues in the economic literature. In particular, for a company to be located near other companies is seen as conducive to the development of business relations. Spatial proximity is also considered to contribute to the quality and efficiency of these relations by facilitating face-to-face meetings that foster the exchange of complex knowledge and, in particular, the emergence of innovation. This article explores the notion of spatial proximity in intercompany relations, its capacity to facilitate exchange, as well as the link with the methods of communication employed (information and communication technologies and face-to-face). It is based on a distinction between real proximity (the spatial distance between firms), perceived proximity (the spatial distance as evaluated by the firm itself) and active proximity (spatial proximity that facilitates the exchanges). The data come from a survey conducted in 2008 with more than 2000 firms located in the Brittany region (France). The findings emphasize the relative nature of the notion of spatial proximity and the distinction in some cases between real and active proximities, and show that the positive perception of the role of spatial proximity is sustained by the increased face-to-face contact it entails.     

批发业空间及其形成机制研究综述

通过对国内外批发业空间及其形成机制的研究梳理,将批发业的研究分为三个阶段,一是20世纪30-60年代,依附于区位论的批发业区位研究,学者受克里斯塔勒的中心地理论影响,流行用与批发贸易相关的指标来测量城市中心性;二是20世纪70-90年代,对批发业区位进行专门研究,并对其形成机制的探讨程度加深;同时,通过研究批发业来探讨城镇体系的文献也较为多见;三是20世纪90年代中期至今,批发业的空间优化,并与现代物流业紧密结合。我国对批发业的学术研究主要集中在批发市场方面,且起步较晚,研究内容上,对批发市场空间布局及其影响因素的研究较为深入,但缺乏批发市场的空间演变及其形成机制的研究。同时,批发市场货流空间的研究、批发业交易功能与物流功能的空间分离关注较少。     

Local politics and foreign ventures in China's transitional economy: the political economy of Singaporean investments in China

The re-articulation of China into the global economy since December 1978 has led to a tremendous influx of foreign capital during the past two decades. Constrained by the limited domestic market and encouraged by home-country government, transnational corporations from Singapore are regionalising increasingly into the Asia Pacific region. To date, a significant amount of Singaporean investments abroad has gone to China. Based on personal interviews with parent companies in Singapore and their subsidiaries and/or affiliates in China, this paper aims to examine the political economy of Singaporean investments in China. Specifically, I argue that successful cross-border operations of Singaporean firms are embedded in dense networks of social and political relationships. These relationships provide the political leverage and strategic resources to enable the establishment of Singaporean firms in China. This establishment, however, is contingent on blending with local politics in China through which foreign firms use leverage on the partnership advantage of local governments (difang zhengfu), their enterprises, and business activities. This rise of local corporatism is a key institutional consequence of the recent rescaling of China's political economy. Case studies of ventures by Singaporean firms in China are presented to support my arguments. Taken together, these empirical materials shed light on the importance of understanding the role of politics at different spatial scales in influencing transnational corporations and their international business operations.     

中国本土零售连锁超市空间扩张特征与格局研究——以永辉超市为例

连锁超市已经成为中国零售商业的主要经营业态,以中国本土大型零售连锁超市永辉超市为例,从空间扩张模式、扩张格局和区位选择等方面对零售连锁超市空间扩张特征进行研究。结果表明:伴随中国零售市场的发展和零售业的对外开放,永辉超市在1999至2013年15年间空间扩张速度递增,呈现指数型增长态势;空间扩张模式可以归纳为区域深耕式、接触式、跳跃式和复合式扩张四种,经营成熟期以后主要表现为复合式扩张;永辉超市在跨省际空间扩张中进入城市的次序与城市人口规模呈现弱的正相关性,在省域范围内,永辉超市门店的空间扩张具有首位分布趋向特征。     

Planning the Neighbourhood Economy: Land-Use Plans and the Economic Potential of Urban Residential Neighbourhoods in the Netherlands

This article investigates the relationship between zoning by-laws, as put forward in governmental land-use plans and the viability of urban residential neighbourhood economies. The Dutch planning tradition has long been characterized by strict separation of functions and top-down planning. We argue that profound changes in social and economic structures make land-use planning practices less suitable for the current policy formula of “mixed urban milieus”. Although the residential neighbourhood might not be the location of large firms, it definitely attracts small ones, and facilitates starting businesses whose presence (and potential growth) can be beneficial to the city as a whole. We present a typology of spatial patterns of neighbourhood economies based on land-use plans and describe whether these are related to the distinctive economic development of the neighbourhood over the period 1999–2007.     

Externalization of research and development in Europe

This paper has two objectives. First, it records the reality of interaction with public sector research science for firms in two manufacturing industries, the flow measuring and electronic component industries, in three countries, the UK, France and Belgium. Secondly, by analyzing the patterns of interaction, a conceptualization of one dimension of the spatial process of technological change is approached. This paper develops the notion that the links created by externalization between universities and national laboratories and industry are elements in a filière which integrate fundamental and applied research. The concept of filière is used to analyze patterns of interaction in the case study industries and countries.     

The Network Approach: Dutch Spatial Planning between Substratum and Infrastructure Networks

This paper investigates the substratum and infrastructure networks as relevant components of spatial planning. Since 2001, in Dutch government documents on spatial planning the Layers Approach has been presented, with three layers: substratum; networks; occupation patterns. The Layers Approach assumes that the characteristics of the substratum provide conditions for infrastructure networks and that these infrastructure networks then condition the occupation patterns, including the locations for housing, business activities and related services. These more or less hierarchical relationships are supposed to produce clear ground rules for the spatial planner. The Layers Approach seems to offer a robust methodology for spatial planning. This contribution presents the background of the Layers Approach, adds some critical notes and proposes an amendment: the Network Approach, connecting different spatial scales. After the presentation of a typology of networks a preliminary overview of the dynamics of transport networks is given. The spatial relevance of information and communication technology (ICT) networks, that support transport networks, is discussed. Nodes are presented as links between infrastructure networks and occupation patterns. The paper concludes that actors, dealing with regional spatial plans in a decentralized planning system, have to acquire an in-depth knowledge of the technology, economy and governance of current networks and the qualities of the substratum, which form a conditioning and stimulating framework for the spatial planning of urban and regional areas.     

COMPETITIVE AND IMPERFECTLY COMPETITIVE LABOR MARKETS IN URBAN AREAS*

ABSTRACT. In this paper, I present a model incorporating two kinds of spatial labor markets: a centralized competitive market at the central business district (CBD) and dispersed local markets across economic space under imperfect competition. Wage differentials and the size of the two types of markets are endogenously determined by rational choices of workers as well as profit maximization of firms. Workers can exercise rational choices with respect to market places where they commute and supply their labor. In this model, I attempt, in effect, to integrate the Hotelling-type paradigm and the Samuelson-type paradigm in a consistent spatial setting.     

Spatial cooperation patterns and their impact on innovation outcomes: lessons from firms in a low-technology region

This paper examines cooperation patterns of firms in the German low-technology region of Lower Bavaria. Particular emphasis is placed on the interplay among the spatial scale of cooperation, the form of cooperation and the type of innovation. Generic results show that overall, firms with a spatially more diverse set of cooperation linkages have a higher likelihood of innovating. However, the innovation outcomes differ depending on the spatial scale of cooperation. While cooperation with regional partners positively correlates with low-threshold innovations, cooperation with spatially distant partners positively correlates with product innovations. Surprisingly, it is application-oriented cooperation that channels the relation in both cases. The findings support the view that innovation of firms in low-technology regions is driven by ‘development’ rather than ‘research’. It also suggests that innovation-driven growth may even be possible in regions with limited values on the traditional innovation-supporting factors.     

R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.     

The Age of Environmental Impasse? Globalization and Enviromental Transformation of Metropolitan Cities

Metropolitan cities are undergoing a major spatial and environmental transformation. The proliferation of business districts, corporate headquarters and international hotels is prompting a massive verticalization and densification of land use, which is affecting the urban environment and infrastructure in a number of ways. Nowhere are urban environmental pressures so accentuated as in Third World metropolitan cities. Here the rush to gain a competitive edge in the global economy, in order to attract multinational firms and become a ‘global city’, is leading to an inconsistent urban policy framework in which development policies frequently clash with environmental policies. This article explores the environmental complexity of Third World metropolitan cities, focusing on the cases of Beijing and São Paulo. After a conceptual review of the relationship between globalization, cities and urban environmental problems, it examines how globalization is prompting spatial and environmental transformations in both cities; looks at the dichotomy between development policies and environmental policies by analysing the instruments in place; and investigates the role of globalization vis‐à‐vis urban sustainability issues.     

UNIFORM SPATIAL PRICING

ABSTRACT Uniform spatial pricing means that a firm delivers its product to any customer at a fixed price, independent of location. Economic theory explains the use of uniform pricing by the added profit generated by absorbing freight charges of distant customers. I extend this insight by demonstrating that when demand elasticity and transportation cost are positively enough correlated, uniform pricing generates higher profits than mill pricing. I show that this result can better explain observed patterns of price policy choice by mail order and web firms. A second result is application of this idea to firms with many shipping facilities.     

Employment Dynamics on Business Estates

The central question of this paper is: “What is the magnitude of different forms of employment dynamics on business estates in the Netherlands between 2000 and 2005 and to what extent are the employment dynamics on business estates different from employment dynamics in general?” In order to answer this question, we examine three kinds of local employment dynamics: (1) entries and exits, (2) inter-municipal relocation and (3) the growth/decline of existing firms. We find that new firm formation and inter-municipal relocation do not lead to employment growth on business estates. However, the in situ employment growth on business estates is higher than the general employment growth in the Netherlands. Therefore, it can be concluded that business estates play an important role in local employment dynamics by facilitating the growth of incumbent firms.