University spillovers and new firm location

Abstract

This paper examines the impact of locational choice as a firm strategy to access knowledge spillovers from universities. Based on a large data set of young high-technology start-ups publicly listed in Germany, this study tests the propositions that geographic proximity to the university is shaped by different spillover mechanisms-research and human capital-and by different types of knowledge spillover-natural sciences and social sciences. The results suggest that spillover mechanisms as well as spillover types are heterogeneous. In particular, the evidence suggests that new knowledge and technological-based firms have a high propensity to locate close to universities, presumably in order to access knowledge spillovers. However, the exact role that geographic proximity plays is shaped by the two factors examined in this paper-the particular knowledge context, and the specific type of spillover mechanism.

Entry by research-based spin-offs: the determinants of regional variation

“…Access to financial assets is crucial to the creation of spin-offs, particularly the availability of venture capital, due to its greater propensity to finance hog-risk start-ups 5 (Di Gregorio and Shane, 2003;Landry et al, 2006; Powers and E En nt tr ry y b by y r re es se ea ar rc ch h--b ba as se ed d s sp pi in n--o of ff fs s: : t th he e d de et te er rm mi in na an nt ts s o of f r re eg gi io on na al l v va ar ri ia at ti io on n _ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ _ (Armington and Acs, 2002;Figueiredo et al, 2002). In the specific case of knowledgebased firms, access to specialized and qualified labor is indeed an essential resource, so its existence directly influences location decisions (Audretsch et al, 2005;Evila et al, 2011¸ Kim et al, 2012Woodward et al, 2006).…”

“…In this sense, several studies show that different factors associated to regional characteristics are also considered crucial for the location of the new knowledge and high-technology firms (Audretsch and Feldman, 2004;Audretsch et al, 2005;Baptista and Mendonça, 2010;Buenstorf and Geissler, 2011;Woodward et al, 2006). Thus, regional characteristics assume a leading role in the location of RBSOs at the time of their creation.…”

“…positive externalities resulting from co-location. Several studies refer that an high density of high-technology firms attracts companies to that research intensive region, allowing them access knowledge spillovers 4 (Armington and Acs, 2002;Audretsch et al, 2005;Friedman and Silberman, 2003;Lach and Schankerman, 2008).…”

“…TTO and incubators (Lockett and Wright, 2005;O´Shea et al, 2005;Powers and McDougall, 2005); (4) the nature and type of technology, namely their pervasiveness, novelty and intellectual property protection (Conceição et al, 2012;Gilsing et al, 2010;Shane, 2001);and (5) the external characteristics, i.e. the regional infrastructures that impact on spin-off activity, such as venture capital availability, knowledge infrastructures and industry structure (Audretsch et al, 2005;Stam, 2010;Woodward et al, 2006).…”

Evolving localization patterns of company foundationsEvidence from the German MST-industry

“…Especially young high-tech industries tend to cluster around research institutions and universities due to local spillover of tacit knowledge (e.g. Audretsch et al 2005). Following Caniëls (2000), universities tend to distribute their knowledge more openly than companies.…”