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Clusters of Entrepreneurship and Innovation

In: Innovation Policy and the Economy, Volume 14

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  • Aaron Chatterji
  • Edward Glaeser
  • William Kerr

Abstract

This paper reviews recent academic work on the spatial concentration of entrepreneurship and innovation in the United States. We discuss rationales for the agglomeration of these activities and the economic consequences of clusters. We identify and discuss policies that are being pursued in the United States to encourage local entrepreneurship and innovation. While arguments exist for and against policy support of entrepreneurial clusters, our understanding of what works and how it works is quite limited. The best path forward involves extensive experimentation and careful evaluation.

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This chapter was published in:

  • Josh Lerner & Scott Stern, 2014. "Innovation Policy and the Economy, Volume 14," NBER Books, National Bureau of Economic Research, Inc, number lern13-1, May.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 12943.

    Handle: RePEc:nbr:nberch:12943

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    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
    3. Oliver Falck & Christina Guenther & Stephan Heblich & William R. Kerr, 2013. "From Russia with love: the impact of relocated firms on incumbent survival," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 419-449, May.
    4. Glenn Ellison & Edward L. Glaeser & William Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," NBER Working Papers 13068, National Bureau of Economic Research, Inc.
    5. Agrawal, Ajay & Cockburn, Iain M & Galasso, Alberto & Oettl, Alexander, 2013. "Why are some regions more innovative than others? The role of firm size diversity," CEPR Discussion Papers 9766, C.E.P.R. Discussion Papers.
    6. Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
    7. Gilles Duranton, 2007. "Urban Evolutions: The Fast, the Slow, and the Still," American Economic Review, American Economic Association, vol. 97(1), pages 197-221, March.
    8. Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-hopping in Silicon Valley: some evidence concerning the micro-foundations of a high technology cluster," Finance and Economics Discussion Series 2005-11, Board of Governors of the Federal Reserve System (U.S.).
    9. Matias Busso & Jesse Gregory & Patrick M. Kline, 2010. "Assessing the Incidence and Efficiency of a Prominent Place Based Policy," NBER Working Papers 16096, National Bureau of Economic Research, Inc.
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    11. Carlino, Gerald A. & Chatterjee, Satyajit & Hunt, Robert M., 2007. "Urban density and the rate of invention," Journal of Urban Economics, Elsevier, vol. 61(3), pages 389-419, May.
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    15. Aaron K. Chatterji & Kenneth Y. Chay & Robert W. Fairlie, 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," CESifo Working Paper Series 4182, CESifo Group Munich.
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    17. Ajay Agrawal & Iain Cockburn & Carlos Rosell, 2010. "Not Invented Here? Innovation in Company Towns," NBER Chapters, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
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    Cited by:
    1. Boockmann, Bernhard & Buch, Claudia M. & Schnitzer, Monika, 2014. "Evidenzbasierte Wirtschaftspolitik in Deutschland: Defizite und Potenziale," IZA Standpunkte 68, Institute for the Study of Labor (IZA).
    2. Glaeser, Edward & Joshi-Ghani, Abha, 2013. "Rethinking Cities: Toward Shared Prosperity," World Bank - Economic Premise, The World Bank, issue 126, pages 1-14, October.

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