Knowledge diversity and entrepreneurship following an economic crisis: an empirical study of regional resilience in Great Britain

ABSTRACT

This article argues that the ability of entrepreneurs to facilitate regional adaptation to economic crises is mediated by the size and diversity of local knowledge stocks. The specific research question addressed is the hypothesis that, in the aftermath of a crisis, the birth rate of new firms will recover more rapidly in regions with a strong and diverse knowledge stock. It is theorised that unrelated knowledge diversity is of particular importance in stimulating new entrepreneurial opportunities and structural change, whilst the incentive to exploit opportunities differs according to region-specific factors. In addition to this theoretical contribution, the article develops spatial econometric models to test these research hypotheses using data on sub-regions of Great Britain for 2004–2014. The results support the central theoretical hypotheses and emphasise the positive significance of unrelated knowledge diversity and employment in knowledge intensive services to regional recovery from an economic shock. A key implication for policy-makers wishing to facilitate regional adaptation to crises is that it is important to focus on fostering entrepreneurship by developing a region’s stock of knowledge intensive services and the diversity of the knowledge creating sector, rather than relying on specialised clusters of firms.     

Italian industrial districts as cognitive systems: Are they still reproducible?

Adopting a knowledge-based perspective, this study develops a framework of how Italian industrial districts (IDs) operate and evolve as cognitive systems. First, we analyse the mechanisms that facilitate knowledge diffusion across firms within IDs, the enabler of cross-firm knowledge transfer (absorptive capacity) and the process of producing new knowledge by combination. Within this analysis, we consider the formation of new firms resulting from the break-away of human resources from existing district firms (spin-offs) as a particular form of knowledge transfer and production within districts. Knowledge production by combination may take place not only within boundaries of IDs, but also involve external sources. We suggest that innovations made by combining internal and external knowledge have played an important role in shaping the evolutionary trajectories of IDs. Finally, again from the cognitive perspective, we address the issue of how globalization impacts on district systems, concentrating on the positive role that two different types of local actors play in their reproduction and evolution: the global–local firms and institutions providing knowledge-intensive business services.     

制造业聚集、知识溢出与区域创新绩效——以我国医药、电子及通讯设备制造业为例的实证研究

本文的目的是探讨制造业生产行为聚集所产生的各类知识溢出对区域创新绩效的影响。这些溢出包括知识的专业化溢出、多样化溢出和空间溢出。对我国医药、电子及通讯设备制造业实证分析的结果显示,知识的专业化溢出对两类制造业的区域创新存在积极影响;多样化溢出对医药制造业区域创新绩效的影响为正,对电子及通讯设备制造业的影响为负。实证结果表明,各类知识溢出对区域创新绩效的影响存在行业间差异和国家间差异。     

The role of Technological Business Incubators in supporting business innovation in China: a case of regional adaptability?

This paper examines the extent to which both the support services of Technological Business Incubators (TBIs) and exogenous local factors facilitate the innovation activity of incubated new ventures. Using data on all 215 surviving Chinese incubators and their incubated firms from government surveys conducted over five consecutive years from 2009 until 2013, combined with information from nine case studies, we examine the effects of four incubator services on three levels of innovation in incubated firms, whilst also taking account of key exogenous factors. Technical service support from an incubator was found to have had a positive influence on all levels of innovation activity across all regions whilst incubator financial support had a positive effect on the making of more advanced innovations. The availability of venture capital had a significant impact on making lower order innovations whereas the availability of scientific knowledge resources influenced more advanced innovation activity. Whereas TBI support services in the more developed Eastern region are mainly concerned with leveraging external resources, those in the less developed Central and Western regions are more concerned with compensating for the lack of external resources to support innovation.     

Local employment growth in West Germany: A dynamic panel approach

In this paper we study the dynamics of local employment growth in West Germany from 1980 to 2001. Using dynamic panel techniques, we analyse the timing of the impact of diversity and specialisation, as well as of the human capital structure of local industries. Diversity has a positive effect on employment growth in the short run, which is stronger in manufacturing than in services. Concerning specialisation we find also positive effects. They are, however, not strong enough to reinforce growth permanently, since there is mean reversion in the process. A positive effect of education is only found in manufacturing. Additionally, we look at the impact of firm size and regional wages on local employment growth.     

Fostering product innovation in industry networks: the mediating role of knowledge integration

The locus of innovation has shifted from single entrepreneurial firms to groups of networked firms. Inter-organizational cooperation rather than competition to exploit the value of knowledge through new product innovation lies at the heart of the knowledge-based economy. This paper focuses on the phenomenon of network product innovation and the holistic integration of distributed knowledge across organizational boundaries to foster production innovation. A new construct, knowledge integration, is found to have a strong positive impact on new product performance. Resource complementarity, market orientation, and information sharing are three antecedents that positively affect knowledge integration across organizational boundaries. Survey data also suggest that knowledge integration serves as a mediator between the three antecedents and product innovation performance. Managerial implications and future research directions are discussed.     

Inter-organizational geographical proximity and local start-ups' knowledge acquisition: a contingency approach

Entrepreneurship studies offer conflicting answers to a key research question: What impact does geographic proximity have on the process of knowledge acquisition by start-ups? This study proposes a new, dynamic framework of three interrelated factors that may moderate this impact; it anticipates that the importance of local and distant knowledge networks depends on the life cycle stages reached by both start-ups and industrial clusters, as well as on the dyadic relationships between local start-ups and their business partners. Some additional variables help strengthen the conceptual model and the key research propositions. This study thus offers a new perspective on entrepreneurship research, namely the configuration of start-ups in both spatial and social contexts. Such a view offers two substantial benefits: a greater understanding of the role played by geographical proximity in knowledge acquisition and an impetus for further empirical research in this field. This article concludes with various implications of the proposed model for both theoretical and managerial purposes.     

Policies to promote new knowledge-intensive industrial agglomerations

This paper explores the role of policymakers in encouraging endogenous growth in regions. Policymakers in many regions have sought to create the local conditions and the knowledge base that will allow a dynamic and innovative cohort of new knowledge-intensive entrepreneurial firms to emerge. We review existing models of agglomeration to identify the critical antecedents and dynamic processes that lead to agglomeration formation. The policy interventions and instruments that impact on these antecedents and processes are then outlined. We describe the evolution of two new knowledge-based agglomerations, Dublin in Ireland and Tampere in Finland, emphasizing the role of policy interventions in the process of agglomeration formation. We show how policy interventions play an important role in stimulating the development of new agglomerations. However, because the process of agglomeration formation is dependent on local resources and processes, efforts to directly transpose a development model from an established district are likely to be ineffective.     

On the spatial economic impact of global warming

We propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade is costly, firms innovate, and technology diffuses over space. Emissions from energy used in production contribute to the atmospheric stock of carbon, which increases temperature. Warming differs across latitudes and its effect on productivity varies across sectors. We calibrate the model to analyze how climate change affects the spatial distribution of economic activity, trade, migration, growth, and welfare. We assess quantitatively the impact of migration and trade restrictions, energy taxes, and innovation subsidies.     

城市商业银行金融服务多样化能否影响城市人口集聚？

本文首先通过理论剖析和文献总结探讨城市商业银行金融服务多样化与城市人口集聚之间的关系,之后使用中国60家城市商业银行2001-2010年数据,实证结果证实城市商业银行金融服务多样化对城市人口集聚起到正面作用;城市商业银行经营规模和绩效均促进城市人口集聚,同时本文验证了宏观经济发展和城市人口集聚具有正相关的关系。加入时间效应后的研究结果与基本模型一致,表外业务、非利息收入均对城市人口集聚产生正相关影响,但非利息收入对城市人口集聚的正相关影响只体现在：2005-2010年时间段;加入地区效应的研究发现：城市商业银行金融服务多样化对东部,西部城市人口集聚的促进作用明显,而且在西部的影响程度大于东部地区。     

Economic Structure and Local Growth: France, 1984–1993

For 52 industry sectors and 42 services sectors, this paper tests how the local economic structure (local sectoral specialization and diversity, competition, average size of plants, and total employment density) affects the 1984–1993 employment growth of 341 local areas. These areas entirely and continuously cover the French territory. The impact of the local economic structure differs in industry and services. In industrial sectors, local total employment density, competition, and plant size always reduce local growth. Sectoral specialization and diversity have a negative impact on growth, but also increase the growth of a few sectors. Service sectors always exhibit negative specialization effects and positive diversity effects. Competition and plant size have a negative impact and density a positive one, but exceptions are observed for some sectors.     

The role of university-based industrial extension services in the business performance of small manufacturing firms: case-study evidence from Western New York

This paper investigates the role of university-based industrial extension services in the business performance of small manufacturing firms in an economically declining region of the United States (Western New York). The outreach initiatives of a specific University at Buffalo (UB) programme are described. Particular attention is given to the activities of UB's Centre for Industrial Effectiveness (CIE), an outreach unit with a mandate to improve the product and/or process development efforts of local manufacturing firms. Our data suggest positive returns on investment for firms that have sought technical support under CIE programmes. A key finding is that CIE's services typically entail the transmission of well-established procedures rather than radically new ways of doing things. A further finding is that firms that have used CIE to develop improved products have experienced stronger investment returns than their counterparts that have focused upon process development (although the returns are positive in both instances). More broadly, our data suggest positive correlations between levels of project investment and a variety of commercial outcomes, including sales growth, job-retention, and unit-cost reduction. The implications of these results for regional economic development policy are discussed. The paper also reviews some of the weaknesses that curtail the effectiveness of university-based centres such as CIE.     

Canadian Input–Output-based Multi-factor Productivity Accounts

Statistics Canada's multi-factor productivity accounts are integrated into the Canadian system of national accounts. The company's originality rests, in part, on the application of the standard productivity formula to alternative but related sets of outputs and inputs in a bottom-up approach that covers the whole business sector. The concept of vertical integration plays a central role in establishing relationships between alternative indices, including the relationships between static and dynamic indices. In the static framework, the stock of capital is exogenous. In the dynamic framework, capital goods become endogenous produced inputs. Establishments are seen as exchanging capital services across time periods. Time becomes a primary input of production, the productivity of which is associated with technical knowledge. A new measure of capital services and an extended definition of economic efficiency are finally introduced, which solve some paradoxical results that are obtained with the conentional measure.     

The university's Janus face: The innovation–inequality nexus

The university is a key source of talent and a key driver of innovation and economic growth in a knowledge-based economy. But, in performing these economic functions, it also contributes to economic and spatial inequality. Our research uses a variety of new data to examine this Janus face of the university in innovation and inequality across U.S. metro areas. We find evidence that the university plays a role in both regional innovation, boosting local patenting and startup companies, and in economic inequality, with higher rates of income and occupational segregation in metros with highly rated universities.     

知识密集制造业和高技术服务业相关性：基于上海数据的实证研究

以往研究表明,高技术的服务业的发展是因为知识密集制造业外包的结果,反过来富有竞争力的高技术服务业也能促进知识密集制造业的发展,两者存在理论上的产业关联性。我们应用上海市“两业”时间序列数据的实证研究表明,知识密集制造业和高技术服务业之间存在很强的关联性,支持了理论假设。     

THE REGIONAL GEOGRAPHY OF U.S. BUSINESS SERVICES GROWTH, 1977–1987: EVIDENCE AND POLICY IMPLICATIONS

Regional analysts and policy makers have long struggled with problems arising from the uneven development of industrial systems. Most efforts have focused on manufacturing even though the business services sector continues to gain importance as a source of employment. This paper provides rigorous analyses of the regional organization of business services employment growth in the United States and discusses some implications of regionalism for the development of industrial policy. The analyses use chi-square goodness-of-fit tests and spatial statistics to examine regional structure. State-level employment data in ten business service industries for two periods, 1977–1982 and 1982–1987, are used in the analyses. The results show that although employment growth varies across the United States, it does not exhibit consistent regional organization. Instead, growth is organized more around metropolitan complexes. The lack of regional organization suggests that industrial policy should focus on the urban concentration of growth, telecommunications infrastructure and urban-rural linkages.     

Evolving United States stock market volatility: The role of conventional and unconventional monetary policies

Despite the econometric advances of the last 30 years, the effects of monetary policy stance during the boom and busts of the stock market are not clearly defined. In this paper, we use a structural heterogeneous vector autoregressive (SHVAR) model with identified structural breaks to analyse the impact of both conventional and unconventional monetary policies on U.S. stock market volatility. We find that contractionary monetary policy enhances stock market volatility, but the importance of monetary policy shocks in explaining volatility evolves across different regimes and is relative to supply shocks (and shocks to volatility itself). In comparison to business cycle fluctuations, monetary policy shocks explain a greater fraction of the variance of stock market volatility at shorter horizons, as in medium to longer horizons. Our basic findings of a positive impact of monetary policy on equity market volatility (being relatively stronger during calmer stock market periods) are also corroborated by analyses conducted at the daily frequency based on an augmented heterogeneous autoregressive model of realised volatility (HAR-RV) and a multivariate k-th order nonparametric causality-in-quantiles framework. Our results have important implications both for investors and policymakers.     

The long-run effects of a residential property tax and local public services

The long-run effects of a residential property tax and local public services are analyzed in the context of an urban spatial model. An endogenous labor market allows the local wage rate to adjust, in conjunction with residential and business land prices, in response to local fiscal changes.     

How robots change the world

• ? The global robotics revolution is rapidly accelerating, as fast‐paced technological advances converge. This will transform robots’ capabilities and their ability to replace human workers, including in services where robot use is also set to rise steeply.
• ? The global stock of industrial robots multiplied three‐fold over the past two decades, to 2.25 million. Trends suggest it will multiply even faster in the next 20 years, reaching as many as 20 million by 2030, with 14 million in China alone.
• ? The rise of the robots will boost productivity and growth, and create new jobs, some in yet‐to‐exist industries. We estimate a 30% rise in robot installations by 2030 would create around $5 trillion in additional global GDP in today's prices.
• ? But existing business models will be disrupted and jobs lost – we estimate up to 20 million manufacturing jobs by 2030. Each new industrial robot eliminates 1.6 manufacturing jobs on average and almost twice that in low‐skilled regions.
• ? Job losses will vary greatly across countries and regions, with the toll falling disproportionately on lower‐skilled workers and on poorer local economies, aggravating social and economic stresses. The challenges for governments and policy‐makers are daunting at a time of already growing political polarisation

     

Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries

This paper focuses on the vertical integration of knowledge-intensive business services (KIBS) into manufacturing sectors, using a subsystem approach to input–output analysis. It aims at correctly assessing the process of structural change that has occurred in the four main European countries (France, Germany, Italy and the UK) over time (1995–2005). It does not focus on KIBS sectors per se, but on their function as carriers and sources of knowledge which influences the performance of sectors, value chains and clusters across industries and within countries. The analysis shows that KIBS’ contribution to satisfying the final demand of manufacturing is in general largely underestimated; that KIBS vertical integration into manufacturing has increased over time in all the countries investigated except the UK; and that the extent to which manufacturing sectors outsource to KIBS is significantly affected by their technological intensity.