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The Dynamics of Agglomeration Externalities along the Life Cycle of Industries
[journal article]
Abstract This paper investigates the changing roles of agglomeration externalities along the industry life cycle. We argue that industries have different agglomeration needs in different stages of their life cycles because their mode of competition, innovation intensity, and characteristics of learning oppor... view more
This paper investigates the changing roles of agglomeration externalities along the industry life cycle. We argue that industries have different agglomeration needs in different stages of their life cycles because their mode of competition, innovation intensity, and characteristics of learning opportunities change over time. For 12 Swedish manufacturing industries, we determined for each year between 1974 and 2004 whether the industry was in a young, intermediate, or mature stage. Whereas MAR externalities steadily increased with the maturity of industries, the effect of local diversity (Jacobs’ externalities) was positive for young industries but declined and even became negative for more mature industries.... view less
Keywords
evolution
Classification
Area Development Planning, Regional Research
Political Economy
Free Keywords
Industry life cycle; Agglomeration; Externalities; Marshall-Arrow-Romer (MAR); Jacobs
Document language
English
Publication Year
2010
Page/Pages
p. 49-65
Journal
Regional Studies, 45 (2010) 1
DOI
https://doi.org/10.1080/00343401003596307
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)