Entry determinants of the Software and Video games firms in Barcelona

Abstract

This paper aims to determine which reasons lead Software and Video games firms (SVE hereafter) to locate in certain areas of Barcelona. This high-tech industry is a key industry in developed economies mainly located in urban areas. To carry out this analysis, we use SVE firm entries at neighbourhood level between 2011 and 2013 and a set of covariates that capture neighbourhood characteristics (localization and agglomeration economies, high-tech amenities, diversity, human capital and crime). Our results show that i) SVE firms tend to choose locations with a high diversity and good high-tech amenities (e.g. 22@ district), ii) the importance of the localization and agglomeration economies, since spatial spillovers are a key factor for this type of firms and iii) the role of the diversity in the location process of these firms, since SVE firms choose places with a high diversity of cultural and creative activity. JEL Codes: R10, R30, L86. Keywords: Software and Video games Industry, location determinants, Count Data models, Barcelona