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Local entrepreneurship clusters in cities
Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University.ORCID iD: 0000-0002-2871-3809
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0001-7432-7442
2016 (English)In: Journal of Economic Geography, ISSN 1468-2702, E-ISSN 1468-2710, Vol. 16, no 1, 39-66 p.Article in journal (Refereed) Published
Abstract [en]

We show that entrepreneurs are co-located within cities. One plausible source of such spatial clustering is local social interactions, where individuals' decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer-employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability that an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5% point higher entrepreneurial intensity, all else equal, produces between six and seven additional entrepreneurs per square kilometer, each year. Our estimates suggest a local feedback-effect in which the presence of established entrepreneurs in a neighborhood influences the emergence of new local entrepreneurs. Our analysis supports the conjecture that social interaction effects constitute a mechanism by which local entrepreneurship clusters in cities develop and persist over time.

Place, publisher, year, edition, pages
Oxford University Press, 2016. Vol. 16, no 1, 39-66 p.
Keyword [en]
Clusters, Entrepreneurship, Local social interactions, Neighborhood, Path dependence, Peer effects, Role models, Social network externalities, entrepreneur, local participation, probability, social network, urban economy, Sweden
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-38432DOI: 10.1093/jeg/lbu049ISI: 000374189600002Scopus ID: 2-s2.0-84965005992OAI: oai:DiVA.org:hj-38432DiVA: diva2:1172742
Available from: 2018-01-10 Created: 2018-01-10 Last updated: 2018-01-10Bibliographically approved

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Andersson, MartinLarsson, Johan P.

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  • apa
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  • vancouver
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Language
  • de-DE
  • en-GB
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Output format
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