Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence

Sant'Anna School of Advanced Studies, LEM Working Paper No. 2002/21

37 Pages Posted: 16 Jul 2003

See all articles by Giulio Bottazzi

Giulio Bottazzi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Giorgio Fagiolo

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Giovanni Dosi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Date Written: February 2003

Abstract

Economies of agglomeration are central to the understanding of the emergence of industrial clustering. However, existing models that incorporate such agglomeration economies have been largely neglecting the vast amount of empirical evidence on inter-sectoral differences in the patterns of industrial concentration. In this paper, we propose a baseline model of firm location in presence of dynamic increasing returns. The model is able to deliver testable implications about the long-run distribution of the size of spatial clusters which we test against data on geographical location of Italian firms belonging to different sectors. We show that accordance of theoretical predictions with data is quite high. Moreover, we find statistically significant differences in the strength of economies of agglomeration, not only across geographical locations but also across industrial sectors. We argue that geographical clustering is highly affected by intersectoral differences in innovation patterns and learning regimes that map into different drivers of sector- and location-specific dynamic increasing returns to agglomeration.

Keywords: Industrial Clustering, Economies of Agglomeration, Firm Locational Choice, Dynamics

JEL Classification: F12, R10

Suggested Citation

Bottazzi, Giulio and Fagiolo, Giorgio and Dosi, Giovanni, Mapping Sectoral Patterns of Technological Accumulation into the Geography of Corporate Locations. A Simple Model and Some Promising Evidence (February 2003). Sant'Anna School of Advanced Studies, LEM Working Paper No. 2002/21, Available at SSRN: https://ssrn.com/abstract=406522 or http://dx.doi.org/10.2139/ssrn.406522

Giulio Bottazzi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy
+39-050-883343 (Phone)
+39-050-883344 (Fax)

Giorgio Fagiolo (Contact Author)

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy
+39-050-883341 (Phone)
+39-050-883344 (Fax)

Giovanni Dosi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy

HOME PAGE: www.lem.sssup.it

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