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Journal of Economic Geography Advance Access originally published online on June 17, 2005
Journal of Economic Geography 2005 5(5):567-588; doi:10.1093/jeg/lbh074
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Right arrow C42 - Survey Methods
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Right arrow L24 - Contracting Out; Joint Ventures; Technology Licensing
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© The Author (2005) Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

The effect of regional differences on the performance of software firms in the Netherlands

Ron A. Boschma* and Anet B.R. Weterings**

* Department of Economic Geography, Urban and Regional Research Centre Utrecht, Utrecht University, P.O. Box 80.115, 3508 TC Utrecht, The Netherlands. email <r.boschma{at}geog.uu.nl>
** Department of Economic Geography, Urban and Regional Research Centre Utrecht, Utrecht University, P.O. Box 80.115, 3508 TC Utrecht, The Netherlands

This paper aims to explore the effect of regional differences on the performance of software firms in the Netherlands. Inspired by evolutionary economics, we account for the impact of: (1) co-location and sharing a local knowledge base; (2) pre-entry experience in the same or related industries; (3) being connected; and, (4) having organizational capabilities to cope with change. The outcomes of the regression analyses on data gathered among 265 software firms suggest that firms located in regions specialized in ICT have a higher innovative productivity. Spin-offs and firms with organizational capabilities also perform better, while network relationships do not affect the performance of software firms.

Keywords: evolutionary economics, agglomeration economies, innovative productivity, spin-offs, software sector,
JEL classifications: C42, L86, O31, R10
Date submitted: 28 July 2004     Date accepted: 18 April 2005


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