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Firm Performance in the Periphery: On the Relation between Firm-Internal Knowledge and Local Knowledge Spillovers

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Author

Summary, in English

This paper challenges one of the fundamental propositions within economic geography; that location in knowledge regions contributes to firm performance in general and especially for knowledge intensive firms that compete on the basis of knowledge. Our analysis of Swedish micro-data on 32,535 firms from 2004-2011 provides evidence that knowledge intensive firms benefit less from local knowledge spillovers than firms with comparably low in-house knowledge. This suggests that firms with high internal competencies can compensate for a lack of local knowledge spillovers and that negative knowledge externalities may make location outside knowledge centers more beneficial for such firms.

Publishing year

2015

Language

English

Publication/Series

Papers in Innovation Studies

Volume

2015

Issue

40

Document type

Working paper

Publisher

CIRCLE, Lund University

Topic

  • Business Administration

Keywords

  • knowledge spillovers
  • periphery
  • center
  • agglomeration
  • innovation
  • externalities

Status

Published