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Proximity and economic activity: An analysis of vendor‐university transactions
Author(s) -
Goldschlag Nathan,
Lane Julia,
Weinberg Bruce A.,
Zolas Nikolas
Publication year - 2019
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12397
Subject(s) - stylized fact , vendor , tacit knowledge , transaction cost , database transaction , marketing , business , transactional leadership , set (abstract data type) , industrial organization , geographical distance , transaction data , economics , knowledge management , finance , computer science , management , sociology , database , macroeconomics , programming language , population , demography
This paper uses transaction‐based data to provide new insights into the link between the geographic proximity of businesses and associated economic activity. It develops two new measures of, and a set of stylized facts about, the distances between observed transactions between customers and vendors for a research intensive sector. Spending on research inputs is more likely with businesses physically closer to universities than those further away. Firms supplying a university project in one year are more likely to subsequently open an establishment near that university. Vendors who have supplied a project, are subsequently more likely to be a vendor on the same or related project.