Papers in Evolutionary Economic Geography

March 20, 2017

# 17.07 The spatial evolution of the Italian motorcycle industry (1893-1993): Klepper’s heritage theory revisited

Andrea Morrison, Ron Boschma

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This paper investigates the spatial evolution of the Italian motor cycle industry during the period 1893-1993. We find support for both the heritage theory of Klepper and the agglomeration thesis of Marshall. Indeed, being a spinoff company or an experienced firm enhanced the survival rates, but we also found a positive effect of being located in the Motor Valley cluster in Emilia Romagna. Interestingly, this beneficial effect of a cluster could not be found outside the Emilia Romagna region. This might indicate the importance of a favourable local institutional environment, as propagated by the Emilian district literature.

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