A Spatial Interpretation of the Density Dependence Model in Industrial Demography

In this paper the density dependence model, which was developed in organizational ecology, is compared to the economic-geographical notion of agglomeration economies. There is a basic resemblance: both involve some form of positive feedback between size of the population and growth. The paper explor...

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Bibliographic Details
Published in:Small business economics 2004-04, Vol.22 (3/4), p.253-264
Main Author: van Wissen, Leo
Format: Article
Language:English
Subjects:
Agglomeration
Breweries
Business studies
Demographics
Demography
Economic competition
Economic conditions
Economic geography
Economic modeling
Economic models
Economic theory
Economics
Economies of agglomeration
External economies
Geography
Human resources
Industry
Institutions
Labor unions
Local economy
Organization theory
Organizational behavior
Population growth
Social capital
Spatial analysis
Urban economics
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Summary:In this paper the density dependence model, which was developed in organizational ecology, is compared to the economic-geographical notion of agglomeration economies. There is a basic resemblance: both involve some form of positive feedback between size of the population and growth. The paper explores how the theoretical concepts compare to each other, and if an interdisciplinary crossfertilization between both is fruitful. It is found that there are a number of important similarities in the underlying theories. These refer to the process of legitimation, which has some close similarities to concepts derived from theories of new industrial districts, such as social capital, institutional thickness, and innovative milieux. Differences remain important as well. For instance, the sociological interpretation of competition is not transferable into notions of agglomeration economies. An important conclusion is that agglomeration effects can and should be incorporated into the density dependence model.
ISSN:0921-898X
1573-0913
DOI:10.1023/B:SBEJ.0000022232.12761.a9