The impact of aging and technological relatedness on agglomeration externalities: a survival analysis

We study localization, urbanization and Jacobs’ externality effects on plant survival in Sweden (1970–2004). We focus on two questions: (i) do agglomeration externalities change with the age of plants? and (ii) what is the role of technological relatedness among local industries? We find that agglom...

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Bibliographic Details
Published in:Journal of economic geography 2012-03, Vol.12 (2), p.485-517
Main Authors: Neffke, Frank M.H., Henning, Martin, Boschma, Ron
Format: Article
Language:English
Subjects:
Agglomeration
Cities
Economic externalities
Economic geography
Economic models
Employment
Externality
Industrial plants
Industrial production
Industry
Localization
Plants
Studies
Survival analysis
Survival rates
Urbanization
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Summary:We study localization, urbanization and Jacobs’ externality effects on plant survival in Sweden (1970–2004). We focus on two questions: (i) do agglomeration externalities change with the age of plants? and (ii) what is the role of technological relatedness among local industries? We find that agglomeration externalities affect survival chances of plants. This effect, however, differs between corporate and non-affiliated plants. Furthermore, we find that Jacobs’ externalities benefit only young plants, whereas urbanization externalities harm plants at all ages. Localization externalities are insignificant, while the local presence of technologically related industries substantially increases survival rates of plants.
ISSN:1468-2702
1468-2710
DOI:10.1093/jeg/lbr001