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Journal of Economic Geography Advance Access originally published online on July 29, 2008
Journal of Economic Geography 2008 8(5):593-614; doi:10.1093/jeg/lbn030
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© The Author (2008). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

This article appears in the following Journal of Economic Geography issue: Geography and the Cultural Economy [View the issue table of contents]

Spinoff dynamics and the spatial formation of the fashion design industry, 1858–2005

Rik Wenting*

*Urban and Regional research Centre Utrecht (URU), Section of Economic Geography, Utrecht University, Van Unnik building, Heidelberglaan 2, P.O. Box 80115, 3508TC, Utrecht, NL.

email <r.wenting{at}geo.uu.nl>

JEL classifications: B52, C40, L25, M13, R12

Many firms start as spinoff companies having the advantage of inheriting organizational routines of the parent firm. By constructing the genealogical structure of parent-spinoff relationships, one can analyze the effects of routine replication on firm success. Based on a unique dataset on the global fashion design industry we find that spinoffs outperform other firms and that spinoffs inherit parent success. We supplement this genealogical perspective with an analysis of localization economies and migration flows, which are shown to have an insignificant effect on firm success. We conclude that the local replication of routines through spinoffs caused the clustering of fashion design in a handful of cities around the world.

Keywords: industrial dynamics, organizational routines, clustering, cultural industries
Date submitted: 2 September 2007     Date accepted: 2 May 2008


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