How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?
Michael Fritsch, Viktor Slavtchev
Annals of Regional Science,
No. 1,
2010
Abstract
This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are externalities resulting from high R&D intensity of the local private sector as well as knowledge from local public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.
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Cooperation Patterns of Incubator Firms and the Impact of Incubator Specialization: Empirical Evidence from Germany
Michael Schwartz, Christoph Hornych
Technovation,
2010
Abstract
The article examines cooperation patterns of 150 firms located in German business incubators (BIs). More specifically, this study distinguishes between networking within the tenant portfolio and the academic-industry linkages of the tenant firms. We further contribute to the relevant literature by explicitly considering differences in cooperation patterns between firms located on diversified and specialized incubator facilities. Empirical results do not support the common assumption that specialized incubation strategies increase the effectiveness of incubator-internal networking compared to diversified BIs. Also, incubator specialization is not superior to diversified incubators with respect to the promotion of linkages of their tenants with academic institutions. For academic linkages, industry effects matter more than incubator characteristics.
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Specialized incubation strategies are on the rise
Michael Schwartz, Christoph Hornych
Wirtschaft im Wandel,
No. 5,
2010
Abstract
Im Handlungsspektrum wirtschaftspolitischer Entscheidungsträger zugunsten technologie- und innovationsbasierter Wachstumsdynamik gelten Technologie- und Gründerzentren (TGZ) seit fast 30 Jahren vielfach als Herzstück urbaner Wirtschafts-und Innovationsstrategien in Deutschland.
Neben breit aufgestellten, in ihrer sektoralen und technologischen Ausrichtung eher diversifizierten TGZ werden zunehmend so genannte spezialisierte TGZ errichtet. Diese stimmen ihr Förderinstrumentarium auf die Unterstützung einer einzigen Branche bzw. weniger komplementärer Branchen (oder Technologien) ab.
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Specialization, Diversity, Competition and their Impact on Local Economic Growth in Germany
Martin T. W. Rosenfeld, Annette Illy, Michael Schwartz, Christoph Hornych
Abstract
This study systematically examines the impact of fundamental elements of urban economic structure on urban growth in Germany from 2003 to 2007. We test four elements simultaneously, that is sectoral specialization, diversification of economic activities, urban size as well as the impact of local competition. To account for the effect of varying spatial delimitations in the analysis of urban growth, we further differentiate between cities and planning regions as geographical units. The analysis covers manufacturing industries as well as service sectors. Most previous work produces inconsistent results and concentrates on localization economies and/or diversification, while urban size and the effect of local competition are widely ignored. Our regression results show a U-shaped relationship between localization economies and urban growth and positive effects of local competition on urban growth. With respect to diversification, we find positive effects on urban growth on the city-level, but insignificant results on the level of the planning regions. The impact of urban size also differs between free cities and planning regions; in the former a U-shaped relationship is found whereas the effect is inversely U-shaped for the latter.
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Subsidized Vocational Training: Stepping Stone or Trap? An Evaluation Study for East Germany
Eva Dettmann, Jutta Günther
IWH Discussion Papers,
No. 21,
2009
Abstract
The aim of this paper is to analyze whether the formally equal qualifications acquired during a subsidized vocational education induce equal employment opportunities compared to regular vocational training. Using replacement matching on the basis of a statistical distance function, we are able to control for selection effects resulting from different personal and profession-related characteristics, and thus, to identify an unbiased effect of the public support. Besides the ‘total effect’ of support, it is of special interest if the effect is stronger for subsidized youths in external training compared to persons in workplace-related training. The analysis is based on unique and very detailed data, the Youth Panel of the Halle Centre for Social Research (zsh).
The results show that young people who successfully completed a subsidized vocational education are disadvantaged regarding their employment opportunities even when controlling for personal and profession-related influences on the employment prospects. Besides a quantitative effect, the analysis shows that the graduates of subsidized training work in slightly worse (underqualified) and worse paid jobs than the adolescents in the reference group. The comparison of both types of subsidized vocational training, however, does not confirm the expected stronger effect for youths in external vocational education compared to workplace-related training.
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Urban Growth in Germany – The Impact of Localization and Urbanization Economies
Christoph Hornych, Michael Schwartz, Annette Illy, Martin T. W. Rosenfeld
IWH Discussion Papers,
No. 19,
2009
Abstract
This study examines the impact of localization and urbanization economies as well as the impact of city size on urban growth in German cities from 2003 to 2007. Although, from a theoretical perspective, agglomeration economies are supposed to have positive impacts on regional growth, prior empirical studies do not show consistent results. Especially little is known about agglomeration economies in Germany, where interregional support policy and the characteristics of the federal system are further determinants of urban growth. The results of the econometric analysis show a U-shaped relationship between specialization and urban growth, which particularly holds for manufacturing industries. We do not find evidence for the impact of Jacobs-externalities; however, city size shows a positive (but decreasing) effect on urban growth.
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Organization and Financing of Innovation, and the Choice between Corporate and Independent Venture Capital
Paolo Fulghieri, Merih Sevilir
Journal of Financial and Quantitative Analysis,
No. 6,
2009
Abstract
This paper examines the impact of competition on the optimal organization and financing structures in innovation-intensive industries. We show that as an optimal response to competition, firms may choose external organization structures established in collaboration with specialized start-ups where they provide start-up financing from their own resources. As the intensity of the competition to innovate increases, firms move from internal to external organization of projects to increase the speed of product innovation and to obtain a competitive advantage with respect to rival firms in their industry. We also show that as the level of competition increases, firms provide a higher level of financing for externally organized projects in the form of corporate venture capital (CVC). Our results help explain the emergence of organization and financing arrangements such as CVC and strategic alliances, where large established firms organize their projects in collaboration with external specialized firms and provide financing for externally organized projects from their own internal resources.
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