Scandinavian Working Papers in Economics

Working Papers,
Blekinge Institute of Technology, Department of Industrial Economics

No 2014/02: Something New: Where do new industries come from?

Maryann Feldman () and Sam Tavassoli ()
Additional contact information
Maryann Feldman: Department of Public Policy, University of North Carolina at Chapel Hill, Chapel Hill, NC, USA
Sam Tavassoli: CITR, Blekinge Inst of Technology, Postal: CITR (Center for Innovation and Technology Research), Department of Industrial Economics, Blekinge Inst of Technology, 371 79 Karlskrona, Sweden

Abstract: The focus of this paper is on the question of how new industries originate in places. There is often confusion between the process of diffusion and the locational factors that give rise to early stage creative discovery. There is a long and distinguished literature that considers the diffusion of ideas. Diffusion is important as it influences the general uptake and implementation of ideas across geography but it is a different process than our focus here. We advance the argument that the creation of new industries is a process that has inherently geographic features. Something new is created out of prior knowledge but a more complex process is required to develop an industry and reap the economic benefits.

Keywords: new industries; Schmookler scissor; locational factors

20 pages, March 31, 2014

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