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Culturally clustered or in the cloud? location of internet start-ups in Berlin

Moeller, Kristoffer (2014) Culturally clustered or in the cloud? location of internet start-ups in Berlin. SERC Discussion Papers, SERCDP0157. Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.

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Abstract

Knowledge based firms like IT companies do neither have a capital- nor a land intensive production. They predominantly rely on qualified labour and increasingly depend on the location of its (potential) employees. This implies that it is more likely that firms follow workers rather than the other way around. Contributing to the literature of firm location and consumer cities I empirically test the amenity oriented firm location hypothesis. In particular I investigate whether Berlin internet start-up firms, representing a footloose knowledge-based service industry, locate in urban amenity-rich places. Identification builds on the sudden fall of the Berlin Wall. The intra-city analysis yields a significant impact of urban amenities on the location of internet start-up. A comparison with other service industries suggests that amenities are significant to the location choice of creative sectors whereas no effect can be observed for non-creative firms.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2014 The Author
Divisions: Spatial Economics Research Centre
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: D - Microeconomics > D2 - Production and Organizations > D20 - General
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R30 - General
Sets: Research centres and groups > Spatial Economics Research Centre
Date Deposited: 16 Jul 2014 07:50
Last Modified: 16 Jul 2014 07:50
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government
URI: http://eprints.lse.ac.uk/id/eprint/57875

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