Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers

Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers. Regional Studies. One of the most established arguments in regional studies is that knowledge dynamics shape the geography of economic activities and, more specifically, that knowledge-intensive activities benefit from collocation due to knowledge spillovers, local buzz and access to labour. There are, however, competing arguments that knowledge-intensive firms also suffer from negative spillovers and are less dependent on local knowledge sources than often presumed. Using Swedish micro-data from 2005-11, this paper shows that firms with weak internal knowledge grow faster in knowledge-intensive regions. However, the growth difference disappears or is even reversed for knowledge-intensive firms.