Localized spillovers and knowledge flows: How does proximity influence the performance of plants?
2011 (English)In: Economic Geography, ISSN 0013-0095, E-ISSN 1944-8287, ISSN 0013-0095, Vol. 87, no 2, 127-152 p.Article in journal (Refereed) Published
By means of a unique longitudinal database with information on all plants and employees in the Swedish economy, this paper analyzes how geographical proximity influences the impact of localized spillovers and knowledge flows on the productivity growth of plants. Concerning the effects of spillovers, we show that the density of economic activities as such mainly contributes to plant performance within a very short distance from the plant and that the composition of economic activities is more influential further away. Regarding the influence of local industrial setup, proximity increases the need to be located near different, but related, industries whereas in-creased distance implies a greater effect of intra-industry spillovers. The analyses also demonstrate that knowledge flows via the mobility of skilled labor is primarily a sub-regional phenomenon. Only inflows of skills that are related to the existing knowledge base of plants and come from less than 50 kilometers away have a positive effect on plant performance. Concerning outflows of skills, the results indicate that it is less harmful for a dispatching plant if a former employee remains within the local economy as compared to leaving for a job in another part of the national economy.
Place, publisher, year, edition, pages
Worcester: Clark University , 2011. Vol. 87, no 2, 127-152 p.
Agglomeration economies, knowledge spillovers, labor mobility, plant performance, geographical proximity, related variety
Social and Economic Geography
IdentifiersURN: urn:nbn:se:umu:diva-27713OAI: oai:DiVA.org:umu-27713DiVA: diva2:277337