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Geographic scope of proximity effects among small life sciences firms
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Kolympiris, Christos and Kalaitzandonakes, Nicholas (2013) Geographic scope of proximity effects among small life sciences firms. Small Business Economics, 40 (4). pp. 1059-1086. doi:10.1007/s11187-012-9441-0
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Official URL: http://dx.doi.org/10.1007/s11187-012-9441-0
Abstract
A large number of studies have demonstrated that proximity effects from knowledge spillovers, network externalities and other forms of knowledge transfers among like firms are geographically bounded. However, only a few studies have measured the strength and geographic scope of such externalities and even fewer have done so for firms in very close proximity. In this study, we examine the size and geographic scope of proximity effects among all life science firms that have received Small Business Innovation Research (SBIR) grants in the US over a 23-year period while controlling for relevant regional and firm characteristics. From our empirical analysis, we conclude that proximity effects among nearby small life science firms are strong within one-tenth of a mile distance and are exhausted within a radius of 1.5 miles. By examining the location of all firms in the sample, we offer possible explanations for the narrow geographic scope of the measured proximity effects. We also explain the significance of such findings for academic research that seeks to understand the nature of spatial externalities and for public policy.
| Item Type: | Journal Article | ||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School |
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| Library of Congress Subject Headings (LCSH): | Biotechnology industries -- United States, Small business -- Economic aspects -- United States | ||||||
| Journal or Publication Title: | Small Business Economics | ||||||
| Publisher: | Springer New York LLC | ||||||
| ISSN: | 0921-898X | ||||||
| Official Date: | May 2013 | ||||||
| Dates: |
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| Volume: | 40 | ||||||
| Number: | 4 | ||||||
| Page Range: | pp. 1059-1086 | ||||||
| DOI: | 10.1007/s11187-012-9441-0 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Reuse Statement (publisher, data, author rights): | This is a post-peer-review, pre-copyedit version of an article published in Small Business Economics. The final authenticated version is available online at:http://dx.doi.org/10.1007/s11187-012-9441-0 | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
| RIOXX Funder/Project Grant: |
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