2020
DOI: 10.1007/s00168-020-00995-3
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The agglomeration of knowledge-intensive business services firms

Abstract: We analyse the geographic localization and the productivity of knowledge-intensive business services (KIBS) in Italy, using both census data and balance sheet data at the firm level. We find that KIBS are generally agglomerated in urban areas where they attain significantly higher labour productivity levels. Urban productivity advantages are found to be strongly associated with the local availability of human capital and to standard proxies of Marshall-Arrow-Romer and Jacobs agglomeration economies. Forward de… Show more

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Cited by 18 publications
(16 citation statements)
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“…In addition, we assume a moderator effect on localization as we interact the set of dummy variables capturing sector-specific effects with the localization variables. In line with previous evidence on Italy's urban local labour market areas (Di Giacinto et al 2020), we expect that the productivity and wage premia of establishments localized in urban areas are higher in technology-intensive and knowledge-based sectors compared to other manufacturing and services activities.…”
Section: Localization and Urbanizationsupporting
confidence: 86%
“…In addition, we assume a moderator effect on localization as we interact the set of dummy variables capturing sector-specific effects with the localization variables. In line with previous evidence on Italy's urban local labour market areas (Di Giacinto et al 2020), we expect that the productivity and wage premia of establishments localized in urban areas are higher in technology-intensive and knowledge-based sectors compared to other manufacturing and services activities.…”
Section: Localization and Urbanizationsupporting
confidence: 86%
“…1.3. kibs y manufacturas: aglomeración, coaglomeración y crecimiento económico Las kibs son agentes claves en la generación de procesos de "innovación abierta", ya que, a través de sus redes de clientes, incentivan la actualización y revalorización de productos y servicios en diversos sectores productivos, incluyendo la industria manufacturera (Lafuente et al, 2017(Lafuente et al, , 2019Di Giacinto et al, 2020;Doloreux & Frigon, 2020;Sisti & Goena, 2020;Zieba, 2021). Esto resulta clave para empresas que no cuentan con recursos y capacidad para desarrollar innovación interna o propia (Brunow et al, 2020).…”
Section: Aglomeración Y Coaglomeración De Empresasunclassified
“…In other words, urban agglomeration means that the local labor market's size can yield productivity gains (Ciccone, 2002;de la Roca & Puga, 2017;Glaeser &Resseger, 2010;Groot & de Groot, 2020;Lee et al, 2017;Prasert-soong&Puttanapong, 2022;Venhorst, 2017). The higher productivity observed in a dense labor market could be influenced by preferences that arise due to increased competition in that market (Ciccone, 2002;Di Giacinto et al, 2020;Gould, 2007;Henderson & Turner, 2020;Moretti, 2010;Shi et al, 2022;Sveikauskas, 1975;Tadjoeddin& Mercer-Blackman, 2018). Moretti (2010) contends that the size of the labor market is correlated with reduced unemployment risk for employees and the presence of job vacancies for companies, both of which reflect wage differences.…”
Section: Urban Labor Market and Productivitymentioning
confidence: 99%