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Firm Performance in the Periphery: On the Relation between Firm-Internal Knowledge and Local Knowledge Spillovers

Grillitsch, Markus LU and Nilsson, Magnus LU (2015) In Papers in Innovation Studies 2015(40).
Abstract
This paper challenges one of the fundamental propositions within economic geography; that location in knowledge regions contributes to firm performance in general and especially for knowledge intensive firms that compete on the basis of knowledge. Our analysis of Swedish micro-data on 32,535 firms from 2004-2011 provides evidence that knowledge intensive firms benefit less from local knowledge spillovers than firms with comparably low in-house knowledge. This suggests that firms with high internal competencies can compensate for a lack of local knowledge spillovers and that negative knowledge externalities may make location outside knowledge centers more beneficial for such firms.
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
knowledge spillovers, periphery, center, agglomeration, innovation, externalities
in
Papers in Innovation Studies
volume
2015
issue
40
pages
39 pages
publisher
CIRCLE, Lund University
language
English
LU publication?
yes
id
2482a97b-6d24-4245-b92f-3c03fb047ed7 (old id 8253990)
alternative location
http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201540_Grillitsch_Nilsson.pdf
http://swopec.hhs.se/lucirc/abs/lucirc2015_040.htm
date added to LUP
2016-04-04 09:56:45
date last changed
2018-11-22 14:26:57
@misc{2482a97b-6d24-4245-b92f-3c03fb047ed7,
  abstract     = {{This paper challenges one of the fundamental propositions within economic geography; that location in knowledge regions contributes to firm performance in general and especially for knowledge intensive firms that compete on the basis of knowledge. Our analysis of Swedish micro-data on 32,535 firms from 2004-2011 provides evidence that knowledge intensive firms benefit less from local knowledge spillovers than firms with comparably low in-house knowledge. This suggests that firms with high internal competencies can compensate for a lack of local knowledge spillovers and that negative knowledge externalities may make location outside knowledge centers more beneficial for such firms.}},
  author       = {{Grillitsch, Markus and Nilsson, Magnus}},
  keywords     = {{knowledge spillovers; periphery; center; agglomeration; innovation; externalities}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{40}},
  publisher    = {{CIRCLE, Lund University}},
  series       = {{Papers in Innovation Studies}},
  title        = {{Firm Performance in the Periphery: On the Relation between Firm-Internal Knowledge and Local Knowledge Spillovers}},
  url          = {{http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201540_Grillitsch_Nilsson.pdf}},
  volume       = {{2015}},
  year         = {{2015}},
}