Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123931 
Year of Publication: 
2013
Series/Report no.: 
53rd Congress of the European Regional Science Association: "Regional Integration: Europe, the Mediterranean and the World Economy", 27-31 August 2013, Palermo, Italy
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
Knowledge based firms like IT companies do neither have a capital- nor a land intensive production. They predominantly rely on qualified labour and increasingly depend on the location of its (potential) employees. This would imply that firms follow its workers and not the other way around. Contributing to the literature of firm location and consumer cities I empirically test the amenity oriented firm location hypothesis. In particular I investigate whether Berlin internet start-up firms, representing a footloose knowledge-based service industry, locate at urban amenity-rich places. Identification builds on the sudden fall of the Berlin Wall. The intra-city analysis yields a significant impact of urban amenities on the location of internet start-up. A comparison with other service industries suggests that amenities are significant to the location choice of creative sectors whereas no effect can be observed for non-creative firms.
Subjects: 
firm location
urban amenities
internet start-ups
Berlin
JEL: 
R30
D22
L26
Document Type: 
Conference Paper

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