The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector

The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

Tapping into agglomeration benefits by engaging in a community of practice

While a great deal is known in the agglomeration literature regarding the importance of having access to Marshallian externalities for firm performance, less is known about how geographically isolated and remote firms fare with the lack of such access. More recent literature suggests that firms, especially those within geographic proximity, can form a community of practice to facilitate deliberate learning and collectively create a shared repertoire, that is, a set of communal knowledge of procedures, techniques, and standards for best practices. Unlike Marshallian externalities, however, community of practice membership is not necessarily bounded by geography, and as such, isolated firms can also engage in a community of practice and unlock the shared repertoire for their own benefits. The study of the Ontario wine industry (1999–2009) finds that community of practice engagement weakens the detrimental impact of geographic isolation on firm performance, suggesting that isolated firms can tap into agglomeration benefits by engaging in a community of practice.

DETERMINANTS OF AGGLOMERATION IN KOREAN MANUFACTURING INDUSTRIES

Despite accumulated findings on the effects of agglomeration on productivity of manufacturing industries in Korea, little is known about the determinants of agglomeration. Employing an approach similar to Rosenthal and Strange (2001) [Rosenthal, S and W Strange (2001). The determinants of agglomeration. Journal of Urban Economics, 50(2), 191–229.], but using a different agglomeration index, this study examines whether the three microfoundations of agglomeration economies are important to the geographical concentration of Korean manufacturing industries. While estimation results generally confirm that labor market pooling, input sharing and knowledge spillovers contribute to agglomeration, we found some differences with the previous literature. First, non-manufactured inputs are more influential on agglomeration than manufactured inputs. Secondly, aggregate innovation activities, rather than their share of shipments, are a better measure of knowledge spillovers to explain agglomeration. Thirdly, agglomeration of newly established firms is also influenced by the Marshallian externalities with labor market pooling having a stronger and consistent effect. These results are robust to instrumental variables estimation to control for endogeneity related to knowledge spillovers and labor market pooling.

Marshall in Iberia. Industrial Districts and Leading Firms in the Creation of Competitive Advantage in Fashion Products

Firms dealing with “Made in Spain” fashion products (e.g., textiles, apparel, and footwear) have increased their presence in the world market over the last two decades. This paper focuses on the origins of this process. After constructing a new database of export districts, it first investigates the sources of the international competitiveness of these districts. Second, it explores whether industrial districts boosted the internationalization of Spanish fashion firms. The paper concludes that most of today’s outstanding Spanish firms in fashion-related international markets emerged from 1980s’ districts, which could have benefited from classical Marshallian externalities, while also taking advantage of the organizational capabilities of leading firms.

Beyond Marshallian Agglomeration Economies: The Roles of Trade Associations in Meiji Japan

In both developed Western nations and developing countries, economic growth was based on the development of industrial districts, which were much more organized and institutionalized in modern Japan than economist Alfred Marshall had described. Local trade associations played an important role in enhancing Marshallian externalities, arising from the ease of imitating improved ideas and transacting unfinished products among clustered enterprises by facilitating joint actions in the supply of public goods, such as through the creation of local district brands and through the efficient provision of business information. These activities were clearly beyond the scope of agglomeration economies. This article examines the case of Kiryu, one of the best-known silk weaving districts in Japan.