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Journal of Economic Geography Advance Access published online on June 17, 2005
Journal of Economic Geography, doi:10.1093/jeg/lbh074
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© The Author (2005). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oupjournals.org
Received July 28, 2004
Accepted April 18, 2005

Article

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

Ron A. Boschma 1* and Anet B. R. Weterings 1

1 Department of Economic Geography, Urban and Regional Research Centre Utrecht, Utrecht University, P.O. Box 80.115, 3508 TC Utrecht, The Netherlands

* To whom correspondence should be addressed.
Ron A. Boschma, E-mail: r.boschma{at}geog.uu.nl


  Abstract

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.
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