Transport as a location factor: new start-ups and relocations in Portugal

This paper analyses the spatial pattern of manufacturing plant location and relocation using municipality data in Portugal from 1986 to 1997. Over this period most of the Portuguese motorways have been constructed extending the network from just about 200 kilometres at the beginning of the 1980s to over 1,300 kilometres by 1998. This is an interesting development that offers opportunities to explore the role of road infrastructure and its improvements as a location factor. In addition to location determinants widely used in the literature, fine measures of motorway access and road accessibility calculated with GIS methodology are included in panel data estimations. Because plant birth and plant relocation result from two different spatial decision processes in the firm they are treated separately. The present study puts these two events in a dynamic context of the plant life cycle and finds evidence that fits with notions of business dynamics. Plant start-ups are positively influenced by the existence of a local pool of potential entrepreneurs, lower wage costs and a more diversified economic environment. Relocations, on the other hand, prefer areas with a greater availability of producer services and an already larger industrial share. These findings suggest that plant relocations, which are at a later stage of the plant life cycle, add to concentration and geographic specialisation, whilst first locations are primarily influenced by the availability of general inputs and cheap factors of production. A key finding of this paper is that road infrastructure matters for both, but more so for plant relocations. Relocations show a considerably larger attraction towards the new road transport corridors. This indicates that as firms grow, their spatial requirements change to accommodate a greater need for high-quality transport infrastructure to sell output over, and get inputs from, a wider geographic area.

Domestic transport cost reductions and firms’ export behaviour

Transport infrastructure investment reduces the cost of distance and enables firms to establish and maintain contacts over larger distances. Spain has developed an ambitious road building programme over the last decades, which has considerably reduced transport costs to access European markets. In this paper we depart from the traditional aggregate approach in analysing the impacts of transport infrastructure investment. In particular, we examine the export decision of Spanish manufacturing firms and test how domestic transport cost reductions affect firms’ probability of becoming exporters. We estimate models that control for unobserved heterogeneity among firms, endogeneity and initial conditions problems. Our results provide some support for a positive effect of domestic transport improvements on firms’ exporting probability. However, the magnitude of this effects is small, being the strongest effect the one due to previous export experience which suggests high entry costs into export markets

Transport infraestructure, sunk costs and firms' export behaviour

Transport infrastructure investment reduces the cost of distance and enables firms to establish contacts over larger distances. We study the impact of transport-cost reductions on firms’ export behaviour, accounting for the role of entry costs and other firms’ characteristics. Using Spanish data we estimate dynamic probability models controlling for firms’ unobserved heterogeneity and for the simultaneity of firms’ export and location decisions. Our results provide support for a positive effect of domestic transport improvements on firms’ exporting probability for small and medium sized firms. We find a strong effect of previous export experience, suggesting high entry costs into export markets

Spatial patterns of adoption of just-in-time manufacturing

We study the spatial pattern of Just-in-Time (JIT) adoption for a sample of medium-sized and large Spanish manufacturing firms. JIT differs from other advanced manufacturing technologies because it relates directly to the spatial coordination of a firms’ internal production organisation with its external productive environment and depends on the quality of the transport system. Our results confirm the distinctive role of location for JIT adoption even after controlling for industry and plant-specific differences. We find that JIT adoption is greater in smaller cities but with higher transport accessibility indicating that urban congestion in larger urban areas likely reduces the benefits that firms may obtain from JIT implementation.

Transport infraestructure, sunk costs and firms' export behaviour

Transport infrastructure investment reduces the cost of distance and enables firms to establish contacts over larger distances. We study the impact of transport-cost reductions on firms’ export behaviour, accounting for the role of entry costs and other firms’ characteristics. Using Spanish data we estimate dynamic probability models controlling for firms’ unobserved heterogeneity and for the simultaneity of firms’ export and location decisions. Our results provide support for a positive effect of domestic transport improvements on firms’ exporting probability for small and medium sized firms. We find a strong effect of previous export experience, suggesting high entry costs into export markets.Export decision, Transport infrastructure, Accessibility, Dynamic panel data

Differences of Corporate Environmental Responsibility in Small and Medium Enterprises: Spain and Norway

The purpose of this paper is to analyze the factors that are related to Small and Medium Enterprises' (SMEs') environmental attitude. We focus on Spain and Norway - two contrasting countries in this regard. Drawing on evidence from the Flash Eurobarometer 381 Survey: SMEs, Resource Efficiency and Green Markets, the results show that there is a significant difference on environmental commitment in favor of Norway. Our estimation results show that firms' structural characteristics are strong factors influencing attitudes towards environmental responsibility, but even after controlling for such firm-specific differences, Norwegian firms still show a higher probability for a pro-environmental attitude. Moreover, our estimation results also show that the drivers for firms to go beyond environmental legislation are not the same in the two countries. Norwegian firms are more market-driven than Spanish firms in their pro-environmental attitude

An exploratory analysis of networking, R&D and innovativeness in the Spanish electronics sector

Using survey data of electronics firms in the three major electronics clusters in Spain, we examine whether those engaged in networking tend to be more innovative and whether local and extra-regional networking have different effects upon innovativeness. We find a positive relation between different types of network relations and innovativeness. In particular, our findings suggest that subcontracting relationships are a way of exchanging technological know-how and are a potentially important element in the innovation process. With regard to the spatial extent of network relations, we find only weak results for differences between local and extra-regional networking.The authors gratefully acknowledge financial support from the Social and Economic Council of the Community of Madrid, as well as support from grants SEC97-1373 (CICYT) and 06/0092/1997 provided by the Community of Madrid.Peer reviewe

Localización y productividad de la empresa española

Este artículo presenta un análisis exploratorio de la relación que existe entre la localización de una empresa y su productividad. El estudio distingue dos características de localización medidas a nivel municipal: la aglomeración local, medida a través de la densidad de población, y el acceso a mercados, basado en un índice de potencial de mercado. Los resultados muestran una relación positiva y significativa de la productividad de las empresas, y tanto la densidad de población como el potencial de mercado. Además, mientras que la productividad de las empresas es mayor en las áreas urbanas, en municipios fuera de las áreas urbanas la asociación estadística en sección cruzada entre el potencial de mercado y la productividad parece mayor.This paper presents an exploratory analysis of the relation between where a firm is located and its productivity. The analysis distinguishes two location characteristics measured at the municipality level: local agglomeration measured by population density and access to markets captured through market potential. The results show a significant positive relation between both local population density and market potential and firm-level productivity. The results further indicate that while productivity is higher in urban areas, the cross-sectional association between market potential and firm-level productivity appears higher outside urban areas

Local knowledge spillovers and innovation persistence of firms

Recent empirical evidence has shown that firm’s innovation behavior exhibits high persistency but not much is known about potential contingencies affecting the degree of persistence. This paper focuses on the role of the local knowledge environment and asks how local knowledge spillovers affect firms' innovation persistence. The empirical analysis draws upon a representative panel data set of firms in Germany from 2002-2016, complemented by detailed geographic information of patent activity over discrete distances to proxy local knowledge spillovers. Based on correlated random effects probit models that control for state dependence, unobserved individual heterogeneity and endogenous initial conditions, our results corroborate former evidence that persistency in innovation is driven by true state dependence. More importantly, we find that the local patenting activity positively moderates firms' degree of persistency in innovation behavior. This is a novel firm-level mechanism that can explain the widening of spatial disparities in innovation performance. Estimations with different distance bands show that the strength of knowledge spillovers that contribute to innovation persistence via true state dependence declines rather rapidly with increasing distance

Domestic Transport Cost Reductions and Firms’ Export Behaviour

Transport infrastructure investment reduces the cost of distance and enables firms to establish and maintain contacts over larger distances. Spain has developed an ambitious road building programme over the last decades, which has considerably reduced transport costs to access European markets. In this paper we depart from the traditional aggregate approach in analysing the impacts of transport infrastructure investment. In particular, we examine the export decision of Spanish manufacturing firms and test how domestic transport cost reductions affect firms’ probability of becoming exporters. We estimate models that control for unobserved heterogeneity among firms, endogeneity and initial conditions problems. Our results provide some support for a positive effect of domestic transport improvements on firms’ exporting probability. However, the magnitude of this effects is small, being the strongest effect the one due to previous export experience which suggests high entry costs into export markets.Peer reviewe