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Disagreements, Spinoffs, and the Evolution of Detroit as the Capital of the U.S. Automobile Industry
Abstract
The agglomeration of the automobile industry around Detroit, Michigan is explained using a theory in which disagreements lead employees of incumbent firms to found spinoffs in the same industry. Predictions of the theory concerning entry and firm survival are tested using data on the origin, location, and years of production of every entrant into the industry from 1895 to 1966. The geographic concentration of the industry is attributed to four early successful entrants and the many successful spinoffs they spawned in the Detroit area and not to conventional agglomeration economies benefiting co-located firms, as featured in modern theories of agglomeration. Implications of the findings regarding firm strategy are discussed.
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Cites
The Spatial Economy: Cities, Regions, and International Trade
Fujita, M., Krugman, P., & Venables, A. J. (1999) · doi:10.7551/mitpress/6389.001.0001 · Cited by 4,788
Localization of Knowledge and the Mobility of Engineers in Regional Networks
Almeida, P., & Kogut, B. (1999) · Management Science · doi:10.1287/mnsc.45.7.905 · Cited by 2,565
Cited by
Neffke, F., Henning, M., & Boschma, R. (2011) · Economic Geography · doi:10.1111/j.1944-8287.2011.01121.x · Cited by 1,463
Clusters, entrepreneurial ecosystem co-creation, and appropriability: a conceptual framework
Pitelis, C. (2012) · Industrial and Corporate Change · doi:10.1093/icc/dts008 · Cited by 253
Meeting its Waterloo? Recycling in entrepreneurial ecosystems after anchor firm collapse
Spigel, B., & Vinodrai, T. (2021) · Entrepreneurship & Regional Development · doi:10.1080/08985626.2020.1734262 · Cited by 104
Andreoni, A. (2018) · Cambridge Journal of Economics · doi:10.1093/cje/bey037 · Cited by 53
Metadata
- Authors
- Klepper, S.
- Venue
- Management Science
- Published
- 2007-04
- Volume
- 53
- Issue
- 4
- Pages
- 616-631
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W2053496775
- Cited by
- 651
- References
- 2
- FWCI
- 54.87
- Type
- journal article
- Language
- en
- Open access
- closed
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