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Entrepreneurship, Agglomeration and Technological Change

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  • Zoltán Ács

    ()

  • Attila Varga

Abstract

A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union. Copyright Springer 2005

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File URL: http://hdl.handle.net/10.1007/s11187-005-1998-4
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 24 (2005)
Issue (Month): 3 (02)
Pages: 323-334

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Handle: RePEc:kap:sbusec:v:24:y:2005:i:3:p:323-334

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Web page: http://www.springerlink.com/link.asp?id=100338

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Keywords: agglomeration; economic geography; economic growth; entrepreneurship; knowledge spillovers; technological change;

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  1. Douglas Holtz-Eakin & Chihwa Kao, 2003. "Entrepreneurship and Economic Growth: The Proof Is in the Productivity," Center for Policy Research Working Papers 50, Center for Policy Research, Maxwell School, Syracuse University.
  2. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  3. Acs, Zoltán J & Audretsch, David B & Braunerhjelm, Pontus & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
  4. Blau, David M, 1987. "A Time-Series Analysis of Self-employment in the United State," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 445-67, June.
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