Transformation, digitisation and the geography of knowledge

Abstract

This dissertation provides empirical analysis and findings on patterns of the spatial development of the digital industry in Germany over time. The results allow conclusions on the spatial dimension and channels of agglomeration economies and the dissemination of knowledge captured by entrepreneurship in a spatial context. The thesis consists of six main chapters at the interface between spatial questions relevant for urban and regional planning by simultaneously applying theory and methodologies derived from urban economics. In this dissertation, the quantitative research setup builds on a unique, tailor-made geocoded firm-level panel dataset of digital firms. The empirical contributions indicate several main takeaways. Digital firm birth is an urban phenomenon. Young firms are dependent on outside resources and favor thick labour markets with highly educated human capital and knowledge sources. These knowledge sources are Higher Education Institutes and similar firms. Hence, policies targeting homogeneous digital clusters based on co-location are conducive to the local growth of the digital sector. This is because localized spillovers (similar knowledge) decay more rapidly with distance than urbanized (general) spillovers. Further, there is no spatial displacement of the industry over long distances. This means that a locations’ own regional entrepreneurial capital is of fundamental importance for the digital sector.