How to explain the spatial evolution of new industries? The spatial evolution of the Dutch ICT industry

In the paper, we concentrate on one of the most challenging issues of economic geography, that is, how to explain and analyze the evolution of the spatial pattern of new industries. First, we review the literature concerning this issue. Various theoretical frameworks provide an explanation for the spatial evolution of new industries. One view is that the spatial ordering of industry is preordained by geographical endowments, transport possibilities and firms' needs. Weberian location theory, for example, assumes that new technologies develop most rapidly in those regions where their static, pre-given locational needs are most consistent with existing local factors. Another view criticizes such an idea of a preordained spatial pattern. According to the 'window of locational opportunity' view, it overlooks the possibility that (new) needs of new high-tech industries are not there from the outset but come into being as these industries develop. New high-tech firms require new resources (such as knowledge, skills, institutions) that are unlikely to be available in space. The firms have to create their own mechanisms to satisfy their needs and turn 'generic' resources (e.g. basic knowledge and skills) into 'specific' ones (e.g. specialized knowledge and skills). This approach leaves room for the existence of historical accidents in the spatial formation of new industries. New high tech firms are assumed to select their first location based on 'generic' resources and these are expected to be widely available in space. Finally, we discuss a few analytical issues that take up the question whether the spatial evolution of new industries should be described in such terms as necessity or chance. We take the example of the new Information and Communication Technology industry (ICT), which is now shaping the spatial system in Western economies. The depth and significance of the revolution in ICT is widely acknowledged. But how does the spatial pattern of this new industry develop? And how to determine analytically whether this pattern is preordained or whether it is indeed so novel, that this sector opens up a 'window of locational opportunity'?

The effect of regional differences on the performance of software firms in the Netherlands

In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity. Keywords: evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, networks

The effect of regional differences on the performance of software firms in the Netherlands

In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity.Evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, networks

The effect of regional differences on the performance of software firms in the Netherlands

This paper aims to explore the effect of regional differences on the performance of software firms in the Netherlands. Inspired by evolutionary economics, we account for the impact of (1) co-location and sharing a local knowledge base; (2) pre-entry experience in the same or related industries; (3) being connected; and, (4) having organisational capabilities to cope with change. The outcomes of the regression analyses on data gathered among 265 software firms suggest that firms located in regions specialised in ICT have a higher innovative productivity. Spin-offs and firms with organisational capabilities also perform better, while network relationships do not affect the performance of software firms.evolutionary economics, agglomeration economies, innovative productivity, software industry, spin-offs

The effect of regional differences on the performance of software firms in the Netherlands

In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity. Keywords: evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, network

How to explain the spatial evolution of new industries? The spatial evolution of the Dutch ICT industry

In the paper, we concentrate on one of the most challenging issues of economic geography, that is, how to explain and analyze the evolution of the spatial pattern of new industries. First, we review the literature concerning this issue. Various theoretical frameworks provide an explanation for the spatial evolution of new industries. One view is that the spatial ordering of industry is preordained by geographical endowments, transport possibilities and firms' needs. Weberian location theory, for example, assumes that new technologies develop most rapidly in those regions where their static, pre-given locational needs are most consistent with existing local factors. Another view criticizes such an idea of a preordained spatial pattern. According to the 'window of locational opportunity' view, it overlooks the possibility that (new) needs of new high-tech industries are not there from the outset but come into being as these industries develop. New high-tech firms require new resources (such as knowledge, skills, institutions) that are unlikely to be available in space. The firms have to create their own mechanisms to satisfy their needs and turn 'generic' resources (e.g. basic knowledge and skills) into 'specific' ones (e.g. specialized knowledge and skills). This approach leaves room for the existence of historical accidents in the spatial formation of new industries. New high tech firms are assumed to select their first location based on 'generic' resources and these are expected to be widely available in space. Finally, we discuss a few analytical issues that take up the question whether the spatial evolution of new industries should be described in such terms as necessity or chance. We take the example of the new Information and Communication Technology industry (ICT), which is now shaping the spatial system in Western economies. The depth and significance of the revolution in ICT is widely acknowledged. But how does the spatial pattern of this new industry develop? And how to determine analytically whether this pattern is preordained or whether it is indeed so novel, that this sector opens up a 'window of locational opportunity'

Оповідання Ганни Барвінок: тематичний спектр

Bij de ontwikkeling van nieuwe ecologische technologieën blijken regio’s vooral voort te bouwen op hun lokale kennisbasis. Daarom is een regionaal toegesneden innovatiebeleid dat vanuit de bestaande kennisbasis nieuwe gerelateerde activiteiten stimuleert het meest effectief

Kenniscampus als compensatie

Beleidsmakers willen een kenniscampus ontwikkelen als alternatief voor de sluiting van de onderzoeksafdelingen van MSD en Abbott. Echter, het ontbreken van een private of publieke onderzoeksfaciliteit maakt deze kenniscampussen onaantrekkelijk als vestigingsplaats voor innovatieve bedrijven. Voor innovatie is aansluiten bij bestaande campussen gunstiger