Microgeography of Innovation in the City: Location Patterns of Innovative Firms in Berlin

36 Pages Posted: 8 Dec 2016

See all articles by Christian Rammer

Christian Rammer

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research

Jan Kinne

Centre for European Economic Research (ZEW)

Knut Blind

Technische Universität Berlin (TU Berlin)

Date Written: November 15, 2016

Abstract

This paper investigates the micro-location pattern of innovative and non-innovative firms in Berlin using detailed information on the firms' addresses and their local environment. The study employs a unique, representative panel data set of Berlin-based firms from manufacturing and services covering a five-year period (2011-2015) and applying the standard concepts and measurement approaches used in the Community Innovation Surveys. While controlling for firm size, age and sector, we find product innovators and R&D performing firms located closer to research infrastructures, start-ups and other firms from the same industry. They tend to prefer more dynamic neighbourhoods and avoid very densely populated areas. For process innovators, no significant differences from non-process innovators are found. Firms are more likely to introduce new-to-market innovations if other firms in their direct neighbourhood had introduced such innovations in the previous period, but also if firms with such innovations have moved out of their neighbourhood. The 'creative environment' of a firm in terms of bars, cafes, clubs, leisure facilities or cultural locations does not seem to be linked to the innovative activity of firms.

Keywords: Microgeography, Innovation, Location Decision, Berlin, Knowledge Spillovers

JEL Classification: O31, O32, O33, R12, R39

Suggested Citation

Rammer, Christian and Kinne, Jan and Blind, Knut, Microgeography of Innovation in the City: Location Patterns of Innovative Firms in Berlin (November 15, 2016). ZEW - Centre for European Economic Research Discussion Paper No. 16-080, Available at SSRN: https://ssrn.com/abstract=2882503 or http://dx.doi.org/10.2139/ssrn.2882503

Christian Rammer (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Industrial Economics and International Management Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Jan Kinne

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Knut Blind

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Berlin
Germany

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