Regional Industrial Structure Concentration in the United States: Trends and Implications

Economic Geography

Volumn 87, Issue 4, 2011, Pages 421-452

  Drucker, Joshua ^a  

^a UNIVERSITY OF ILLINOIS AT CHICAGO   (United States)

Author keywords

Agglomeration; Firm size; Industrial structure; Manufacturing; Regional concentration; Regional industrial dominance

Indexed keywords

AGGLOMERATION; ECONOMIC DEVELOPMENT; EMPLOYMENT; FIRM SIZE; INDUSTRIAL PERFORMANCE; INDUSTRIAL STRUCTURE; MANUFACTURING;

UNITED STATES;

EID: 80052815048     PISSN: 00130095     EISSN: 19448287     Source Type: Journal    
DOI: 10.1111/j.1944-8287.2011.01129.x     Document Type: Article

References (116)

1. Acs, Z. J., and Armington, C. 2004. The impact of geographic differences in human capital on service firm formation rates. Journal of Urban Economics 56:244-78.
2. Acs, Z. J., and Audretsch, D. B. 1990. Innovation and small firms. Cambridge, Mass.: MIT Press.
3. Acs, Z. J.; Morck, R.; and Yeung, B. 1999. Productivity growth and firm size distribution. In, Entrepreneurship, small and medium-sized enterprises and the macroeconomy, eds. Z. J. Acs, B. Carlsson, and C. Karlsson 367-96. Cambridge, U.K.: Cambridge University Press.
4. Agrawal, A., and Cockburn, I. 2003. The anchor tenant hypothesis: Exploring the role of large, local, R&D-intensive firms in regional innovation systems. International Journal of Industrial Organization 21:1227-53.
5. Amato, L. 1995. The choice of structure measure in industrial economics. Quarterly Journal of Business and Economics 34:39-52.
6. Armington, C., and Acs, Z. J. 2002. The determinants of regional variation in new firm formation. Regional Studies 36:33-45.
7. Attaran, M., and Saghafi, M. M. 1988. Concentration trends and profitability in the US manufacturing sector: 1970-84. Applied Economics 20:1497-510.
8. Audretsch, D. 2001. Research issues related to structure, competition, and performance of small technology-based firms. Small Business Economics 16:37-51.
9. Audretsch, D. B., and Keilbach, M. 2004. Entrepreneurship capital and economic performance. Regional Studies 38:949-59.
10. Autant-Bernard, C.; Mairesse, J.; and Massard, N. 2007. Spatial knowledge diffusion through collaborative networks. Papers in Regional Science 86:341-50.
11. Bahl, R. W.; Firestine, R.; and Phares, D. 1971. Industrial diversity in urban areas: Alternative measures and intermetropolitan comparisons. Economic Geography 47:414-25.
12. Baldwin, J. R., and Brown, W. M. 2004. Regional manufacturing employment volatility in Canada: The effects of specialisation and trade. Papers in Regional Science 83:519-41.
13. Barrios, S.; Bertinelli, L.; and Strobl, E. 2006. Geographic concentration and establishment scale: An extension using panel data. Journal of Regional Science 46:733-46.
14. Berger, A. N., and Udell, G. F. 2002. Small business credit availability and relationship lending: The importance of bank organisational structure. Economic Journal 112:F32-53.
15. Bergman, E. M. 2002. Sustainability of clusters: Ten dos and don'ts. Paper presented at the forty-first Annual Meeting of the Western Regional Science Association, Monterey, Calif.
16. Bernard, A. B., and Jensen, J. B. 1999. Exceptional exporter performance: Cause, effect, or both? Journal of International Economics 47:1-25.
17. Booth, D. E. 1986. Long waves and uneven regional growth. Southern Economic Journal 53:448-60.
18. Boschma, R. A., and Iammarino, S. 2009. Related variety, trade linkages, and regional growth in Italy. Economic Geography 85:289-311.
19. Carlino, G. A. 1980. Agglomeration: New York and Pittsburgh reconsidered. Urban Studies 17:343-51.
20. Carlino, G. A. 1987. Comparisons of agglomeration: Or what Chinitz really said: A reply. Urban Studies 24:75-6.
21. Carree, M., and Thurik, R. 1999. Industrial structure and economic growth. In Innovation, industry evolution, and employment, eds. D. Audretsch and R. Thurik, 86-110. Cambridge, U.K.: Cambridge University Press.
22. Caves, R. E., and Barton, D. R. 1990. Efficiency in U.S. manufacturing industries. Cambridge, Mass.: MIT Press.
23. Chinitz, B. 1961. Contrasts in agglomeration: New York and Pittsburgh. American Economic Review 51:279-89.
24. Christopherson, S., and Clark, J. 2007a. Power in firm networks: What it means for regional innovation systems. Regional Studies 41:1223-36.
25. Christopherson, S., and Clark, J. 2007b. Remaking regional economies: Power, labor, and firm strategies in the knowledge economy. London: Routledge.
26. Cohen, W. M., and Levin, R. C. 1989. Empirical studies of innovation and market structure. In Handbook of Industrial Organization, eds. R. Schmalensee and R. D. Willig, 1059-107. Amsterdam: Elsevier.
27. Cole, R. A.; Goldberg, L. G.; and White, L. J. 2004. Cookie cutter vs. character: The micro structure of small business lending by large and small banks. Journal of Financial and Quantitative Analysis 39:227-51.
28. Combes, P.-P. 2000. Economic structure and local growth: France, 1984-1993. Journal of Urban Economics 47:329-55.
29. Conroy, M. E. 1975a. Regional economic diversification. New York: Praeger Publishers.
30. Conroy, M. E. 1975b. The concept and measurement of regional industrial diversification. Southern Economic Journal 41:492-505.
31. Davies, S. W., and Geroski, P. A. 1997. Changes in concentration, turbulence, and the dynamics of market shares. Review of Economics and Statistics 79:383-91.
32. Desmet, K., and Fafchamps, M. 2005. Changes in the spatial concentration of employment across US counties: A sectoral analysis 1972-2000. Journal of Economic Geography 5:261-84.
33. Dissart, J. C. 2003. Regional economic diversity and regional economic stability: research results and agenda. International Regional Science Review 26:423-46.
34. Drucker, J. 2007. Regional dominance and industrial success: A productivity-based analysis. Doctoral dissertation, Department of City and Regional Planning, University of North Carolina, Chapel Hill.
35. Drucker, J., and Feser, E. J. 2012. Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries. Regional Science and Urban Economics 42:1-14.
36. Duranton, G., and Puga, D. 2001. Nursery cities: Urban diversity, process innovation, and the life cycle of products. American Economic Review 91:1454-77.
37. Enright, M. J. 1995. Organization and coordination in geographically concentrated industries. In Coordination and nformation: Historical Perspectives on the Organization of Enterprise, eds. N. R. Lamoreau and D. M. G. Raff, 103-46. Chicago: University of Chicago Press.
38. Essletzbichler, J., and Rigby, D. L. 2002. The impact of industry mix, technological change, selection, and plant entry and exit on metropolitan labor productivity in the United States. Urban Geography 23:279-98.
39. Evans, A. W. 1986. Comparisons of agglomeration: Or what Chinitz really said. Urban Studies 23:387-9.
40. Feldman, M. P. 2003. The locational dynamics of the US biotech industry: Knowledge externalities and the anchor hypothesis. Industry and Innovation 10:311-28.
41. Feldman, M. P., and Audretsch, D. B. 1999. Innovation in cities: Science-based diversity, specialization, and localized competition. European Economic Review 43:409-29.
42. Feser, E. J. 2001. A flexible test for agglomeration economies in two US manufacturing industries. Regional Science and Urban Economics 31:1-19.
43. Flammang, R. A. 1990. Development and growth revisited. Review of Regional Studies 20:49-55.
44. Fryges, H. 2009. The export-growth relationship: Estimating a dose-response function. Applied Economics Letters 16:1855-9.
45. Giarratani, F.; Gruver, G.; and Jackson, R. W. 2007. Clusters, agglomeration, and economic development potential: Empirical evidence based on the advent of slab casting by U.S. steel minimills. Economic Development Quarterly 21:148-64.
46. Gilbert, B. A.; McDougall, P. P.; and Audretsch D. B. 2006. New venture growth: A review and extension. Journal of Management 32:926-50.
47. Glaeser, E. L., and Kerr, W. R. 2009. Local industrial conditions and entrepreneurship: How much of the spatial distribution can we explain? Journal of Economics and Management Strategy 18:623-63.
48. Golan, A.; Judge, G.; and Perloff; J. M. 1996. Estimating the size distribution of firms using government summary statistics. Journal of Industrial Economics 44:69-80.
49. Gopinath, M.; Pick, D.; and Li, Y. 2004. An empirical analysis of productivity growth and industrial concentration in US manufacturing. Applied Economics 36:1-17.
50. Gordon, I. R., and McCann, P. 2000. Industrial clusters: Complexes, agglomeration and/or social networks? Urban Studies, 37:513-32.
51. Gort, M., and Sung, N. 1999. Competition and productivity growth: The case of the U.S. telephone industry. Economic Inquiry 37:678-91.
52. Grabher, G. 1993. The weakness of strong ties: The lock-in of regional development in the Ruhr area. In The embedded firm: On the socio-economics of industrial networks, ed. G. Grabher, chap.12. London: Routledge.
53. Grabher, G.; Ibert, O.; and Flohr, S. 2008. The neglected king: The customer in the new knowledge ecology of innovation. Economic Geography 84:253-80.
54. Gray, M.; Golob, E.; and Markusen, A. 1996. Big firms, long arms, wide shoulders: The "hub-and-spoke" industrial district in the Seattle region. Regional Studies 30:651-66.
55. Guerrieri, P., and Pietrobelli, C. 2004. Industrial districts' evolution and technological regimes: Italy and Taiwan. Technovation 24:899-914.
56. Hanson, G. H. 2001. Scale economies and the geographic concentration of industry. Journal of Economic Geography 1:255-76.
57. Harrison, B.; Kelley, M. R.; and Gant J. 1996. Innovative firm behavior and local milieu: Exploring the intersection of agglomeration, firm effects, and technological change. Economic Geography 72:233-58.
58. Hay, D. A., and Morris, D. J. 1991. Industrial economics and organization: Theory and evidence. Oxford, U.K.: Oxford University Press.
59. Helper, S. R. 1991. Strategy and irreversibility in supplier relations: The case of the U.S. automobile industry. Business History Review 65:781-824.
60. Henderson, J. V. 1997. Externalities and industrial development. Journal of Urban Economics 42:449-70.
61. Henderson, J. V. 2003. Marshall's scale economies. Journal of Urban Economics 53:1-28.
62. Henderson, J. V.; Kuncoro, A.; and Turner, M. A. 1995. Industrial development in cities. Journal of Political Economy 103:1067-90.
63. Henderson, J. V.; Shalizi, Z.; and Venables, A. J. 2001. Geography and development. Journal of Economic Geography 1:81-105.
64. Herzog, H. W., Jr. 2000. Plant scale, industry agglomeration, and the outlook for regional employment in Central European economies. Journal of Regional Science 40:499-521.
65. Hewings, G. J. D.; Sonis, M.; Guo, J.; Israilevich, P. R.; and Schindler, G. R. 1998. The hollowing-out process in the Chicago economy, 1975-2011. Geographical Analysis 30:217-33.
66. Holloway, S. R., and C. H. Wheeler 1991. Corporate headquarters relocation and changes in metropolitan corporate dominance, 1980-1987. Economic Geography 67:54-74.
67. Holmes, T. J., and Stevens, J. J. 2002. Geographic concentration and establishment scale. Review of Economics and Statistics 84:682-90.
68. Humphrey, J., and Schmitz, H. 2002. How does insertion in global value chains affect upgrading in industrial clusters? Regional Studies 36:1017-27.
69. Ijiri, Y., and Simon, H. A. 1977. Skew distributions and the sizes of business firms. Amsterdam: North-Holland.
70. Jackson, R. W. 1984. An evaluation of alternative measures of regional industrial diversification. Regional Studies 18:103-12.
71. Kambhampati, U. S., and McCann, P. 2007. Regional performance and characteristics of Indian manufacturing industry. Regional Studies 41:281-94.
72. Kim, S. 1995. Expansion of markets and the geographic distribution of economic activities: The trends in U.S. regional manufacturing structure, 1860-1987. Quarterly Journal of Economics 110:881-908.
73. LeSage, J. P.; Fischer, M. M.; and Scherngell, T. 2007. Knowledge spillovers across Europe: Evidence from a Poisson spatial interaction model with spatial effects. Papers in Regional Science 86:393-421.
74. Loveridge, S., and Nizalov, D. 2007. Operationalizing the entrepreneurial pipeline theory: An empirical assessment of the optimal size distribution of local firms. Economic Development Quarterly 21:244-62.
75. Malecki, E. J. 1993. Entrepreneurship in regional and local development. International Regional Science Review 16:119-53.
76. Malmberg, A., and Maskell, P. 2002. The elusive concept of localization economies: Towards a knowledge-based theory of spatial clustering. Environment and Planning A 34:429-49.
77. Markusen, A. 1996. Sticky places in slippery space: A typology of industrial districts. Economic Geography 72:293-313.
78. Marshall, A. 1890 1910. Principles of economics, 6th ed. London: Macmillan.
79. Mason, C. M. 1991. Spatial variations in enterprise: The geography of new firm formation. In Deciphering the enterprise culture: Entrepreneurship, petty capitalism, and the restructuring of Britain, ed. R. Burrows, 74-107. London: Routledge.
80. McGuckin, R. H. 1990. Longitudinal economic data at the Census Bureau: A new database yields fresh insights on some old issues. Working paper CES-WP-90-1 Center for Economic Studies, U.S. Census Bureau, Washington D.C.
81. Moomaw, R. L. 1986. Have changes in localization economies been responsible for declining productivity advantages in large cities? Journal of Regional Science 26:193-92.
82. Mukkala, K. 2004. Agglomeration economies in the Finnish manufacturing sector. Applied Economics 36:2419-27.
83. Needham, D. 1978. The economics of industrial structure, conduct, and performance. New York: St. Martin's Press.
84. Nelson, R. R., and Winter, S. G. 1982. An evolutionary theory of economic change. Cambridge, Mass.: Harvard University Press.
85. Norton, R. D. 1992. Agglomeration and competitiveness: From Marshall to Chinitz. Urban Studies 29:155-70.
86. O'Donoghue, D. 1999. The relationship between diversification and growth: Some evidence from the British urban system, 1978 to 1991. International Journal of Urban and Regional Research 23:549-66.
87. O'Donoghue, D., and Townshend, I. J. 2005. Diversification, specialization, convergence and divergence of sectoral employment structures in the British urban system, 1991-2001. Regional Studies 39:585-601.
88. Okada, Y. 2005. Competition and productivity in Japanese manufacturing industries. Journal of the Japanese and International Economies 19:586-616.
89. Okuyama, Y.; Sonis, M.; and Hewings, G. J. D. 2006. Typology of structural change in a regional economy: A temporal inverse analysis. Economic Systems Research 18:133-53.
90. Porter, M. E. 1990. The competitive advantage of nations. New York: Macmillan.
91. Porter, M. E. 1998a. Clusters and the new economics of competition. Harvard Business Review (November-December):77-90.
92. Porter, M. E. 1998b. Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
93. Powell, T. C., and Lloyd, C. J. 2005. Toward a general theory of competitive dominance: Comments and extensions on Powell (2003). Strategic Management Journal 26:385-94.
94. Pryor, F. L. 2001. New trends in U.S. industrial concentration. Review of Industrial Organization 18:301-26.
95. Quigley, J. M. 1998. Urban diversity and economic growth. Journal of Economic Perspectives 12:127-38.
96. Rantisi, N. M. 2002. The competitive foundations of localized learning and innovation: The case of the women's garment production in New York City. Economic Geography 78:441-62.
97. Rigby, D. L., and Essletzbichler, J. 2000. Impacts of industry mix, technological change, selection and plant entry/exit on regional productivity growth. Regional Studies 34:333-42.
98. Rosenthal, S. S., and Strange, W. S. 2003. Geography, industrial organization, and agglomeration. Review of Economics and Statistics 85:377-93.
99. Rosenthal, S. S., and Strange, W. S. 2004. Evidence on the nature and sources of agglomeration economies. In Handbook of urban and regional economics, Vol. 4, eds. J. V. Henderson and J.-F. Thisse, 2119-71. Amsterdam: Elsevier.
100. Saxenian, A. 1994. Regional advantage: Culture and competition in Silicon Valley and Route 128. Cambridge, Mass.: Harvard University Press.
101. Scherer, F. M. 1980. Industrial market structure and economic performance, 2nd ed. Boston: Houghton-Mifflin.
102. Schmalensee, R. 1989. Inter-industry studies of structure and performance. In Handbook of industrial organization, eds. R. Schmalensee and R. D. Willig, 951-1009. Amsterdam: Elsevier.
103. Scott, A. J. 1986. Industrial organization and location: Division of labor, the firm, and spatial process. Economic Geography 62:215-31.
104. Scott, A. J. 1988a. Metropolis: From the division of labor to urban form. Berkeley: University of California Press.
105. Scott, A. J. 1988b. New industrial spaces: Flexible production organization and regional development in North America and Western Europe. London: Pion.
106. Scott, A. J., and Mantegna, A. 2009. Human capital assets and structures of work in the US metropolitan hierarchy (an analysis based on the O*NET information system). International Regional Science Review 32:173-94.
107. Stanback, T. M., Jr., and Noyelle, T. J. 1982. Cities in transition: Changing job structures in Atlanta, Denver, Buffalo, Phoenix, Columbus (Ohio), Nashville, Charlotte. Totowa, N.J.: Allanheld, Osmun.
108. Storper, M. 1992. The limits to globalization: Technology districts and international trade. Economic Geography 68:60-93.
109. Tarzwell, G. 1999. Canadian city unemployment rates and the impact of economic diversity. Canadian Journal of Regional Science 20:388-99.
110. Treado, C. D., and Giarratani, F. 2008. Intermediate steel-industry suppliers in the Pittsburgh region: A cluster-based analysis of regional economic resilience. Economic Development Quarterly 22:63-75.
111. U.S. Census Bureau. 2002. Metropolitan areas and components, 1999. Washington D.C.: U.S. Census Bureau.
112. U.S. Census Bureau. n.d. County business patterns. Washington D.C.: U.S. Census Bureau.
113. Vossen, R. W. 1999. Market power, industrial concentration and innovative activity. Review of Industrial Organization 15:367-78.
114. Wagner, J. 2002. The causal effects of exports on firm size and labor productivity: First evidence from a matching approach. Economics Letters 77:287-92.
115. Wagner, J. 2007. Exports and productivity: A survey of the evidence from firm-level data. World Economy 30:60-82.
116. Watts, H. D.; Wood, A. M.; and Wardle, P. 2003. "Making friends or making things?" Interfirm transactions in the Sheffield metal-working cluster. Urban Studies 40:615-30.