The spatial scope of agglomeration economies in Brazil

This paper provides evidence about location and colocation patterns of manufacturing entrepreneurship and spatial scope of agglomeration economies in the context of a developing country. Using microgeographic data for all Brazilian manufacturing activities and distance-based measures, we find clear patterns of colocalization between entrants and existing establishments, and that these patterns occur mainly at short distances. For activities presenting colocalization between entrants and existing establishments, our results also indicate that a greater number of incumbent establishments in a given location positively affects the number of entrant establishments that decide to locate there, an effect that attenuates rapidly with distance (generally disappearing after 5 km). This pattern of attenuation is robust to both the inclusion of a comprehensive set of controls for observable and unobservable local characteristics and the use of instrumental variables to address remaining endogeneity concerns.     

The Resilience of Clusters in the Context of Increasing Globalization: The Basque Wind Energy Value Chain

In this paper, we study how globalization impacts on the structure and governance patterns of value chains and on the resilience of local clusters. We study the value chains related to two Basque (Spain) companies in the wind energy industry, Iberdrola and Gamesa, and the local cluster to which they belong. We find that firms within the cluster have different types of relationships with lead companies depending on their competences and the complexity of their products. As a consequence, firms also present different potential for growth and/or resilience: some have the capacity to internationalize their operations and/or shift to the offshore wind market, others are vulnerable to competition from providers in the emerging countries. Against this context, we discuss how the cluster responds to these challenges and the role of policy.     

Spatial Spillovers and Regional Growth: A Cognitive Approach

Spatial spillover effects are widely studied in the literature, as an important source of externality and therefore of discrepancy between private and social optimum, creating the emergence for ad-hoc policy interventions. Within the literature, their spatially-bounded nature is highly emphasised, but the mechanisms for their spatial diffusion are generally considered as a black box, with no reference to territorialized channels through which these externalities spread around. The study aims to present a literature review on the spatial spillover concept, emphasising two main stages of reflection, the so-called spatial approach and the functional approach. This work identifies in a third approach, the cognitive approach, a new perspective to the interpretation of spatial spillovers and their conditions, and on this approach it elaborates theoretically and empirically. The main assumption is that the capabilities of economic agents to absorb and utilize spillovers—implicitly assumed by the spatial spillover theory to be invariant with respect to space—in reality highly depend on strongly territorialized and un-imitable assets, such as local trust, sense of belonging and creativity. This assumption is tested empirically on all NUTS 2 of the 27 European member countries, thanks to a regional forecasting growth model developed by the author, called MASST.