Effects of the knowledge spillover on agglomerations of environment-related industries in Sweden

Abstract

Previous studies revealed that externalities derived from the population concentration in urban areas positively affect agglomerations of high-tech industries. Such externalities are termed as the knowledge spillover. Using the OECD environment-related patent statistics, the purpose of the present study is to explicate the Marshall-Arrow-Romer (MAR) and Jacobs externalities, which result from population concentration in urban areas, on agglomeration of environment-related industries in Sweden. As a result, both externalities positively influenced the agglomeration of these industries. It was revealed, however, that only the MAR externality was statistically significant.