Spatial Differentiation in Industrial Dynamics. The Case of the Netherlands (1994–2005)

Abstract

We compare the industrial dynamics in the core, semi-periphery and periphery in the Netherlands in terms of firm entry-exit, size, growth and location patterns. The contribution of our work is to provide the first comprehensive study on spatial differentiation in industrial dynamics for all firm sizes and all sectors, including services. We find that location patterns are largely consistent with the spatial product lifecycle model: traditional Fordist sectors are over-represented in the periphery, while sectors associated with the ICT paradigm are over-represented in the core, with the notable exception of science-based manufacturing. Second, where the industrial dynamics in manufacturing sectors follow the predicted patterns, the industrial dynamics in service sectors largely contradict product lifecycle theory. We conclude that the spatial product lifecycle theory applies well to traditional manufacturing, while more specific theories are required to understand the location and industrial dynamics of science-based industries and service industries.