Journal of the Knowledge Economy

, Volume 8, Issue 2, pp 385–406 | Cite as

Spatial Distribution of Knowledge-Intensive Business Services in a Small Post-Communist Economy

  • Jan Ženka
  • Josef Novotný
  • Ondřej Slach
  • Igor Ivan
Article

Abstract

The authors examine the patterns and determinants of spatial distribution of selected knowledge-intensive business services in Czechia, a small post-communist country whose capital city holds a strong position and where a significant share of manufacturing and business R&D employment is located in non-metropolitan regions. The central research question asks to what extent the localization of knowledge-intensive business services can be explained by the position of cities in urban hierarchy. Correspondingly, the authors analyse the role of local factors such as regional economic specialization, regional firm size distribution or concentration of (high-tech) manufacturing or business R&D centres. The authors specifically concentrate on the role of large industrial centres in non-metropolitan regions and on the hypothesis of a spatial mismatch between knowledge-intensive business services and manufacturing, dispersed and overrepresented in smaller cities. Empirical results clearly confirmed the former hypothesis. Although the evidence on the latter hypothesis is more complex, it does not hold for the most of knowledge-intensive business services in Czechia.

Keywords

Knowledge-intensive business services Urban hierarchy Non-metropolitan regions Diversity Czechia 

References

  1. Aslesen, H. W., & Isaksen, A. (2007). Knowledge intensive business services and urban industrial development. The Service Industries Journal, 27, 321–338.CrossRefGoogle Scholar
  2. Bathelt, H. (2009). Re-bundling and the development of hollow clusters in the East German chemical industry. European Urban and Regional Studies, 16, 363–381.CrossRefGoogle Scholar
  3. Blažek, J. (2002). Velké firmy a subjekty progresivního terciéru jako aktéři regionálního rozvoje v ČR. In M. Hampl (Ed.), Regionální vývoj: specifika české transformace, evropská integrace a obecná teorie (pp. 227–249). Praha: PřF UK v Praze.Google Scholar
  4. Blažek, J., Žížalová, P., Rumpel, P., & Skokan, K. (2011). Where does the knowledge for knowledge-intensive Industries come from? The case of biotech in Prague and ICT in Ostrava. European Planning Studies, 19, 1277–1303.CrossRefGoogle Scholar
  5. Blažek, J. (2012). Regionální inovační systémy a globální produkční sítě: dvojí optika na zdroje konkurenceschopnosti v současném světě? Geografie – Sborník ČGS, 117, 209–233.Google Scholar
  6. Blažek, J., Žížalová, P., Rumpel, P., Skokan, K., & Chládek, P. (2013). Emerging regional innovation strategies in Central Europe: institutions and regional leadership in generating strategic outcomes. European Urban and Regional Studies, 20(2), 275–294. doi:10.1177/0969776411428651.CrossRefGoogle Scholar
  7. Camacho-Ballesta, J., Melikhova, Y., & Hernández-Peinado, M. (2013). Localization of business services in European regions: large urban areas stand out. European Planning Studies. doi:10.1080/09654313.2013.819416.Google Scholar
  8. Capik, P., & Drahokoupil, J. (2011). Foreign direct investments in business services: transforming the Visegrád four region into a knowledge-based economy? European Planning Studies, 19, 1611–1631.CrossRefGoogle Scholar
  9. Chinitz, B. (1961). Contrasts in agglomeration: New York and Pittsburgh. The American Economic Review, 51(2), 279–289.Google Scholar
  10. Ciarli, T., Meliciani, V., & Savona, M. (2012). Knowledge dynamics, structural change and the geography of business services. Journal of Economic Surveys, 26, 445–467.CrossRefGoogle Scholar
  11. Coe, N. M., & Townsend, A. R. (1998). Debunking the myth of localized agglomerations: the development of a regionalized service economy in South-East England. Transactions of the Institute of British Geographers, 23, 1–20.CrossRefGoogle Scholar
  12. Coffey, W., & Shearmur, R. (1997). The growth and location of high order services in the Canadian Urban System, 1971–1991. The Professional Geographer, 49, 404–418.CrossRefGoogle Scholar
  13. Crone, M., & Watts, D. (2003). The determinants of regional sourcing by multinational manufacturing firms: evidence from Yorkshire and Humberside, UK. European Planning Studies, 11, 717–737.CrossRefGoogle Scholar
  14. Cuadrado-Roura, J. R. (2013). Service industries and regions. Berlin: Advances in Spatial Science. Springer.CrossRefGoogle Scholar
  15. Office, C. S. (2007). Register of research and development. Prague: Internal database of the Czech Statistical Office.Google Scholar
  16. Office, C. S. (2008). Municipalities with extended competences. Prague: Internal database of the Czech Statistical Office.Google Scholar
  17. Office, C. S. (2009). Register of economic subjects in selected production industries. Prague: Internal database of the Czech Statistical Office.Google Scholar
  18. Czech Statistical Office. (2012) Firm size structure. Czech Statistical Office. Retrieved from http://vdb.czso.cz
  19. Czech Statistical Office. (2014) Regional accounts. Czech Statistical Office. Retrieved from http://apl.czso.cz/pll/rocenka/rocenka.indexnu_reg
  20. Daniels, P. W., & Bryson, J. R. (2002). Manufacturing services and servicing manufacturing: knowledge-based cities and changing forms of production. Urban Studies, 39, 977–991.CrossRefGoogle Scholar
  21. David, Q., Peeters, D., Van Hamme, G., & Vandermotten, C. (2013). Is bigger better? Economic performances of European cities, 1960–2009. Cities, 35, 237–254.CrossRefGoogle Scholar
  22. Delgado-Márquez, B. L., & García-Velasco, M. M. (2013). Geographical distribution and regional specialization of knowledge-intensive business services: an empirical investigation across European regions. In J. R. Cuadrado-Roura (Ed.), Service industries and regions. Berlin: Springer.Google Scholar
  23. Dostál, P. (2008). The post-communist capital city effects, transactional activities and regional development in the Czech Republic in the 1990s: a modelling approach. In W. Strubelt & G. Gorzelak (Eds.), City and region. Papers in honour of Jiri Musil (pp. 15–42). Opladen: Budrich UniPress.Google Scholar
  24. Drbohlav, D., & Sýkora, L. (1997). Gateway cities in the process of regional integration in Central and Eastern Europe: the case of Prague. In G. Biffl (Ed.), Migration, free trade and regional integration in Central and Eastern Europe (pp. 215–237). Wien: Verlag Österreich.Google Scholar
  25. Drejer, I., & Vinding, A. L. (2005). Location and collaboration: manufacturing firms’ use of knowledge intensive services in product innovation. European Planning Studies, 13, 879–898.CrossRefGoogle Scholar
  26. Duranton, G., & Puga, D. (2000). Diversity and specialisation in cities: why, where and when does it matter? Urban Studies, 37, 533–555.CrossRefGoogle Scholar
  27. Eurostat. (2011) Eurostat regional yearbook 2011. Retrieved from http://ec.europa.eu/eurostat/documents/3217494/5728777/KS-HA-11-001-EN.PDF.
  28. Eurostat. (2014) High-tech aggregation by NACE Rev. 2. Retrieved from http://epp.eurostat.ec.europa.eu/cache/ITY_SDDS/Annexes/htec_esms_an3.pdf
  29. Francois, J., & Woerz, J. (2007). Producer services, manufacturing linkages, and trade. Journal of Industry Competition and Trade, 8, 199–229.CrossRefGoogle Scholar
  30. Gál, Z., & Ptáček, P. (2011). The role od mid-range universities in knowledge transfer in non-metropolitan regions in Central Eastern Europe. European Planning Studies, 19, 1669–1690.Google Scholar
  31. Gallego, J., & Maroto, A. (2013). The specialization in knowledge-intensive business services (KIBS) across Europe: permanent co-localization to debate. Regional Studies. doi:10.1080/00343404.2013.799762.Google Scholar
  32. Glaeser, E., Kallal, H., Scheinkman, J., & Shleifer, A. (1992). Growth in cities. Journal of Political Economy, 100, 1126–1152.CrossRefGoogle Scholar
  33. Guerrieri, P., & Meliciani, V. (2005). Technology and international competitiveness: the interdependence between manufacturing and producer services. Structural Change and Economic Dynamics, 16, 489–502.CrossRefGoogle Scholar
  34. Hampl, M. (2007). Regionální diferenciace současného socioekonomického vývoje v České republice. Sociologický časopis, 43, 889–910.Google Scholar
  35. Hardy, J., Sass, M., & Fifeková, M. P. (2011). Impacts of horizontal and vertical foreign investment in business services: the experience of Hungary, Slovakia and the Czech Republic. European Urban and Regional Studies, 18, 427–443.CrossRefGoogle Scholar
  36. Henderson, J. V. (2003). Marshall’s scale economies. Journal of Urban Economics, 53, 1–28.CrossRefGoogle Scholar
  37. Henderson, J. V., & Ono, Y. (2008). Where do manufacturing firms locate their headquarters? Journal of Urban Economics, 63, 431–450.CrossRefGoogle Scholar
  38. Hudeček, T., Churaň, R., & Kufner, J. (2011). Dostupnost Prahy při využití silniční dopravy v období 1920–2020. Geografie, 116, 317–334.Google Scholar
  39. Jacobs, W., Koster, H., van Oort, F. (2014) Co-agglomeration of knowledge-intensive business services and multinational enterprises. Journal of Economic Geography 1–33, doi:10.1093/jeg/lbs055 [in press]
  40. Kanó, I. S., & Vas, Z. (2013). Spatial distribution of knowledge-intensive industries in Hungary. Transition Studies Review, 19, 431–444.CrossRefGoogle Scholar
  41. Keeble, D., & Nachum, L. (2002). Why do business service firms cluster? Small consultancies, clustering and decentralization in London and southern England. Transactions of the Institute of British Geographers, 27, 67–90.CrossRefGoogle Scholar
  42. Kraft, S., Halás, M., & Vančura, M. (2014). The delimitation of urban hinterlands based on transport flows: a case study of regional capitals in the Czech Republic. Moravian Geographical Reports, 22, 24–32. doi:10.2478/mgr-2014-0003.CrossRefGoogle Scholar
  43. Meliciani, V., & Savona, M. (2014). The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation. Journal of Economic Geography. doi:10.1093/jeg/lbt038.Google Scholar
  44. Merino, F., & Rubalcaba, L. (2013). Are knowledge-intensive services highly concentrated? Evidence from European regions. Tijdschrift voor Economische en Sociale Geografie, 104, 215–232.CrossRefGoogle Scholar
  45. Moulaert, F., & Djellal, F. (1995). Information technology consultancy firms: economies of agglomeration from a wide-area perspective. Urban Studies, 32, 105–122.CrossRefGoogle Scholar
  46. Müller, E., & Doloreux, D. (2009). What should we know about knowledge intensive business services. Technology in Society, 31, 64–72.CrossRefGoogle Scholar
  47. Müller, E., & Zenker, A. (2001). Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems. Research Policy, 30, 1501–1516.CrossRefGoogle Scholar
  48. Musil, J. (1993). Changing urban systems in post-communist societies in central Europe: analysis and prediction. Urban Studies, 30, 899–905.CrossRefGoogle Scholar
  49. Novotný, J. (2010). Regionální ekonomická konvergence, divergence a další aspekty distribuční dynamiky evropských regionů v období 1992–2006. Politická ekonomie, 2, 166–185.CrossRefGoogle Scholar
  50. Novotný, J., & Cheshire, J. (2012). The surname space of the Czech Republic: examining population structure by network analysis of spatial co-occurrence of surnames. PloS One, 7, e48568.CrossRefGoogle Scholar
  51. Parr, J. B. (2002). Missing elements in the analysis of agglomeration economies. International Regional Science Review, 25, 151–168.CrossRefGoogle Scholar
  52. Pavlínek, P., & Ženka, J. (2011). Upgrading in the automotive industry: firm-level evidence from Central Europe. Journal of Economic Geography, 11, 559–586.CrossRefGoogle Scholar
  53. Pavlínek, P. (2012). The internationalization of corporate R&D and the automotive industry R&D of East-Central Europe. Economic Geography, 88, 279–310.CrossRefGoogle Scholar
  54. Petrakos, G. (2001). Patterns of regional inequality in transition countries. European Planning Studies, 9, 359–383.CrossRefGoogle Scholar
  55. Radosevic, S. (2011). Science–industry links in Central and Eastern Europe and the commonwealth of independent states: conventional policy wisdom facing reality. Science and Public Policy, 38, 365–378.CrossRefGoogle Scholar
  56. Rubalcaba, L., Gallego, J., Gallo, M. T., & Garrido, R. (2013). Business services location and market factors in major European cities. Cities, 31, 258–266.CrossRefGoogle Scholar
  57. Sass, M., & Fifeková, M. (2011). Offshoring and outsourcing business services to Central and Eastern Europe: some empirical and conceptual considerations. European Planning Studies, 19, 1593–1609.CrossRefGoogle Scholar
  58. Senn, L. (1993). Service activities’ urban hierarchy and cumulative growth. The Service Industries Journal, 13, 11–22.CrossRefGoogle Scholar
  59. Shearmur, R., & Doloreux, D. (2008). Urban hierarchy or local buzz? High-order producer service and (or) knowledge-intensive business service location in Canada, 1991–2001. Professional Geographer, 60, 333–355.CrossRefGoogle Scholar
  60. Shearmur, R., & Doloreux, D. (2014). Knowledge-intensive business services (KIBS) use and user innovation: high-order services, geographic hierarchies and internet use in Quebec's manufacturing. Regional Studies. doi:10.1080/00343404.2013.870988.Google Scholar
  61. Simmie, J., & Strambach, S. (2006). The contribution of KIBS to innovation in cities: an evolutionary and institutional perspective. Journal of Knowledge Management, 10, 26–40.CrossRefGoogle Scholar
  62. Slach, O., Koutský, J., Novotný, J., & Ženka, J. (2013). Creative industries in the Czech Republic: a spatial perspective. E + M Ekonomie A Management, 8, 14–28.Google Scholar
  63. Srholec, M. (2007). High-tech exports from developing countries: a symptom of technology spurts or statistical illusion? Regional Studies, 44, 1207–1220.CrossRefGoogle Scholar
  64. Stare, M., & Rubalcaba, L. (2009). International outsourcing of services: what role for Central and East European countries? Emerging Market Finance and Trade, 45, 31–46.CrossRefGoogle Scholar
  65. Storper, M., & Venables, A. J. (2004). Buzz: face-to-face contact and the urban economy. Journal of Economic Geography, 4, 351–370.CrossRefGoogle Scholar
  66. Tonev, P., & Toušek, V. (2002). The typology of the Czech Republic districts (according to the structure of employed with the emphasis on the branch of the manufacturing industry). In M. Balej (Ed.), XX. jubilejní sjezd ČSGS. - Sborník tematického okruhu Regionální rozvoj / regionalizace (pp. 67–78). Ústí nad Labem: Univerzita J. E. Purkyně.Google Scholar
  67. Tsenkova, S. (2006). Beyond transitions: understanding urban change in postsocialist. In S. Tsenkova & Z. Nedović-Budić (Eds.), The urban mosaic of post-socialist Europe (pp. 21–50). Heidelberg: Springer.CrossRefGoogle Scholar
  68. Wernerheim, C. M., & Sharpe, C. A. (2003). ‘High-order’ producer services in metropolitan Canada: how footloose are they? Regional Studies, 37, 469–490.CrossRefGoogle Scholar
  69. Wood, P. (2002). Knowledge intensive services and urban innovativeness. Urban Studies, 39, 993–1002.CrossRefGoogle Scholar
  70. Wood, P. (2006). The regional significance of knowledge-intensive services in Europe. The European Journal of Social Science Research, 19, 51–66.CrossRefGoogle Scholar
  71. Ženka, J., & Pavlínek, P. (2013). The Czech automotive industry in global production networks: regional dimensions of upgrading between 1998 and 2008. Geografie, 118, 116–137.Google Scholar
  72. Ženka, J., Novotný, J., & Csank, P. (2014). Regional competitiveness in Central Europe: in search of a useful conceptual framework. European Planning Studies, 22, 164–183.CrossRefGoogle Scholar
  73. Ženka, J., Novotný, J., Slach, O., Květoň, V. (2015) Industrial specialization and economic performance of microregions: evidence from Czechia. Norsk Geografissk Tidsskritft.Google Scholar
  74. Žížalová, P. (2010). Geography of knowledge based collaboration in a post-communist country: specific experience or generalized pattern? European Planning Studies, 18, 791–814.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Jan Ženka
    • 1
    • 2
  • Josef Novotný
    • 2
  • Ondřej Slach
    • 1
  • Igor Ivan
    • 3
  1. 1.Faculty of Science, Department of Social Geography and Regional DevelopmentUniversity of OstravaOstravaCzechia
  2. 2.Faculty of Science, Department of Social Geography and Regional DevelopmentCharles UniversityPragueCzechia
  3. 3.Institute of GeoinformaticsVŠB-Technical University of OstravaOstravaCzechia

Personalised recommendations