Wednesday, April 3, 2024

Micro-economic Innovation Indicators in Web Data


Suggested by: Bernd Resch

Short description:

The location pattern of any industry is the product of a large number of individual decisions. Industrial location analysis investigates these location decisions and seeks to detect location determinants that trigger and influence such decisions. These determinants are generally referred to as location factors. A thorough understanding of the impact of location factors on firms’ location decisions and firm performance can have important implications for stakeholders. Managers and entrepreneurs can integrate valuable information into the decision-making process when choosing the location of a new venture. Some location factor-firm relationships which are relevant at the macro level (aggregate) may not be so at the micro level (ecological fallacy). Suitable data for microgeographic analysis has become available only recently through the emergence of Volunteered Geographic Information (VGI) and the increasing availability of official (open) geodata.

Kinne and Resch (2018) combined open geodata, Volunteered Geographic Information (VGI), and a comprehensive firm dataset (the Mannheim Enterprise Panel - MUP) containing approximately three million firm observations to empirically estimate the relationship between a set of location factors and the number of local software firms in Germany (see figure).  They concluded that the microgeographic level of analysis provided new insights into the firm site selection process. However, they also pointed out the particular requirements to the statistical model and the data employed in a microgeographic location analysis, like the need for high resolution geodata, which was not available in all domains. They showed that this problem was most severe in cities, which often feature segregated populations and districts with very different socio-economic profiles. In the context of this master thesis, the research conducted by Kinne and Resch in Germany shall be extended to the geo-economic context of the USA, where higher-resolution socio-economic geodata are available. Furthermore, a comparison between the results for Germany and the USA shall be carried out.

Literature:

Kinne, Jan und Bernd Resch (2018), Analyzing and Predicting Micro-Location Patterns of Software Firms, ISPRS International Journal of Geo-Information 7, 1. http://www.mdpi.com/2220-9964/7/1/1/pdf

Arifi, D., Resch, B., Kinne, J. and Lenz, D. (2023) Innovation in Hyperlink and Social Media Networks: Comparing Connection Strategies of Innovative Companies in Hyperlink and Social Media Networks. PLOS ONE, 18(3), pp. e0283372, DOI: https://doi.org/10.1371/journal.pone.0283372.
 
Rammer, Christian, Jan Kinne und Knut Blind (2019), Knowledge Proximity and Firm Innovation: A Microgeographic Analysis for Berlin, Urban Studies.


Start date: ASAP

Prerequisites/qualifications: experience with analysing web data and social media, interest in economic geography/economics, OpenStreetMap, Regression analysis (optional)