2016
DOI: 10.1111/1756-2171.12130
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Spinoffs and clustering

Abstract: Geographic clustering of innovative industries is associated with the entry and success of spinoff firms. We develop a model to explain the multiple empirical patterns regarding cluster growth and spinoff formation and performance, without relying on agglomeration externalities. Clustering naturally follows from spinoffs locating near their parents. In our model, firms grow and spinoffs form through the discovery of new submarkets based on innovation. Rapid and successful innovation creates more opportunities … Show more

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Cited by 23 publications
(7 citation statements)
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References 64 publications
(104 reference statements)
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“…The attention to spin-offs in industrial cluster research began with research into the spin-offs of high-tech industrial clusters in America's Silicon Valley [26][27][28]. It emphasized that companies with leading roles (such as the first semiconductor lab founded by 1955 Nobel Laureate in Physics Shockley in Silicon Valley) are seeds from which myriad new semiconductor companies had spun off; they were interconnected and continuously clustered together to form the Silicon Valley cluster.…”
Section: Spin-offsmentioning
confidence: 99%
“…The attention to spin-offs in industrial cluster research began with research into the spin-offs of high-tech industrial clusters in America's Silicon Valley [26][27][28]. It emphasized that companies with leading roles (such as the first semiconductor lab founded by 1955 Nobel Laureate in Physics Shockley in Silicon Valley) are seeds from which myriad new semiconductor companies had spun off; they were interconnected and continuously clustered together to form the Silicon Valley cluster.…”
Section: Spin-offsmentioning
confidence: 99%
“…As discussed earlier, MAR externalities suggest that industrial clustering contributes to knowledge spillovers and therefore to knowledge spillover entrepreneurship. Challenging this traditional thinking, Klepper and his collaborators (Buenstorf & Klepper, 2009;Golman & Klepper, 2016;Klepper, 2001Klepper, , 2007Klepper, , 2010Klepper, , 2011 argued that it is localized spin-off activity, and not benefits from agglomeration economies, that leads to industrial clustering. Their investigations on different industries (such as semiconductors in Silicon Valley, tires in Akron, and automobiles in Detroit) revealed similar patterns of industrial clustering: One superior firm started somewhere, often serendipitously, and spin-offs from this firm grew the industry into a strong cluster in the same place.…”
Section: Spin-offs: Why Knowledge Spillover Entrepreneurship Matters mentioning
confidence: 99%
“…The concept has become a core research topic not only in management (e.g. Arikan 2009) and economics (Golman and Klepper 2016), but also in disciplines such as economic geography (Asheim et al 2008), urban planning (Turok and Bailey 2004), sociology (Jonas and Berner 2010), and political science (den Hertog et al 2001). Although our understanding of clusters and their contribution to economic performance has improved over the last three decades, the literature has become fragmented and confused, with contrasting theoretical claims and contradictory empirical results describing how clusters generate innovation and economic growth (Martin and Sunley 2003;Wolman and Hincapie 2014).…”
Section: Introductionmentioning
confidence: 99%