Geospatial Networks and Spillover Effects in Inter-organizational Economic Activities

After the experiences of the collapse of Lehman Brothers and natural mega-disasters, it is recognized that regional idiosyncratic shocks can be propagated to the whole economy and cause macro-economic fluctuations. This means that economic activities of organizations are strongly interconnected in a geospatially spread network. Strong connections between organizations are realized in the propagation of negative shocks on the one hand while causing competitiveness on the other. Policy makers have pointed out the application of the "power of connections."

In this project, we focus on inter-organizational connections such as inter-firm transactions and knowledge spillovers. We will empirically analyze network dynamics and spillovers in order to clarify the mechanism of propagation of negative shocks and the causes of competitiveness.

September 30, 2014 - March 31, 2016