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Cited by 201Regional Economics and Spatial AnalysisRegional Development and InnovationFirm Innovation and Growth

Spatial Proximity and Firm Survival in a Declining Industrial District: The Case of Knitwear Firms in Baden-Wu¨rttemberg

Staber, Udo·2001·Regional Studies
DOI 10.1080/00343400125106
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Abstract

The literature on small firm networks in industrial districts postulates the importance of territorial proximity for business innovation and regional development, but empirical research to test this proposition is sparse. While there is some research on the extent of interfirm co-operation, little is known about the performance outcomes of co-operation. I develop competing hypotheses from institutional, ecological and random action theories concerning the survival chances of firms located in geographic proximity, and test them with data on the complete population of knitwear firms in Baden-Württemberg, Germany, for the period from 1960 to 1998. Proportional hazard estimates show that location in clusters of firms in the same industry increased business failure rates, and location in diversified clusters of firms operating in complementary industries reduced failure rates. The empirical results are most consistent with the ecological model of localized competition in resource environments. La documentation sur les réseaux de petites entreprises dans les districts industriels affirme l'importance de la proximité géographique pour ce qui est de l'innovation d'entreprise et de l'aménagement du territoire. Toujours est-il que la recherche empirique qui vient à l'appui de cette affirmation s'avère limitée. Alors qu'il y a de la recherche sur la portée du partenariat interentreprise, les résultats d'un tel partenariat sont plutôt inconnus. A partir des théories institutionnelles, écologiques et relatives au événements au hasard, on construit des hypothèses rivaux concernant le taux de survie des entreprises situées les unes près des autres. Employant des données allant de 1960 à 1998 et provenant du nombre total des fabricants de tricots situés dans la Baden-Württemburg, en Allemagne, on met les hypothèses à l'épreuve. Les estimations proportionnelles des risques montrent que la localisation des entreprises du même secteur en grappes augmente le taux de faillite, et que la localisation des entreprises des secteurs complémentaires réduit le taux de faillite. Les résultats empiriques correspondent au modèle écologique de la concurrence localisée en milieux caractérisés par la disponibilité des ressources. Die Literatur über Netzwerke von kleinen Firmen in industriellen Distrikten postuliert die Bedeutung der räumlichen Nähe für geschäftliche Innovation und Regionalentwicklung, doch empirische Untersuchungen zur Überprüfung dieser These sind rar. Es gibt zwar einige Arbeiten über das Ausmass der kooperativen Zusammenarbeit unter Firmen, doch wenige Studien über die Erfolgsergebnisse der Zusammenarbeit. Der Autor leitet aus institutionalistischen, ökologischen und Zufall basierten Theorien gegensätzliche Hypothesen bezüglich der Überlebenschancen von Firmen ab, deren Standorte sich in geographischer Nähe zu einander befinden, und überprüft sie mit Hilfe von Daten über die gesamte Population von Strickwarenunternehmen in Baden-Württemberg/Deutschland im Zeitraum 1960-1998. Proportionalitätsriskoschätzungen zeigen, dass Standorte in räumlichen Clustern von Firmen der gleichen Industriebranche die Häufigkeit von Firmenschliessungen steigerten, und dass Standorte in einem diversifizierten Cluster von Firmen in komplementären Industriezweigen die Rate der Schliessungen reduzierten. Die empirischen Ergebnisse stimmen weitgehendst mit dem ökologischen Modell örtlich beschränkten Wettbewerbs in Ressourcenumwelten überein.

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  • Where clusters exist but networking does not happen, innovation occurs less often and is less successful.

    “Where clusters exist but networking does not happen innovation occurs less often and is less successful (Staber, 2001).”

    From Networking and innovation: a systematic review of the evidence (2004) · cites this paper as Staber, 2001

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Authors
Staber, U.
Corresponding author
Staber, Udo
Venue
Regional Studies
Publisher
Informa UK Limited
Published
2001-06
Volume
35
Issue
4
Pages
329-341
ISSN
  • 0034-3404 (ISSN-L)
  • 1360-0591
DOI
10.1080/00343400125106
OpenAlex
W2052452381
Cited by
201
References
77
Citations by year
2026: 1 · 2025: 2 · 2024: 3 · 2023: 5 · 2022: 9 · 2021: 4 · 2020: 6 · 2019: 6 · 2018: 28 · 2017: 8 · 2016: 18 · 2015: 12 · 2014: 13 · 2013: 5 · 2012: 11
FWCI
10.88
Type
journal article
Language
en
Open access
closed
Locations
  • Regional Studies (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Regional Economics and Spatial Analysis
  • Social Sciences › Development › Regional Development and Innovation
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
Keywords
business survival, knitwear industry, industrial districts, spatial proximity, industrial clusters, business failure, inter-firm cooperation, complementary industries, resource environment, ecological model, institutional theory, regional development, Baden-Württemberg, business innovation

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