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Clusters of Entrepreneurship

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Author Info
Edward L. Glaeser () (Harvard University, Faculty of Arts and Sciences; Harvard Kennedy School)
William R. Kerr () (Harvard Business School, Entrepreneurial Management Unit)
Giacomo A. M. Ponzetto () (CREI and Universitat Pompeu Fabra)

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Abstract

Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people.

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Publisher Info
Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 10-019.

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Length: 54 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:hbs:wpaper:10-019

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Related research
Keywords: Entrepreneurship; Industrial Organization; Chinitz; Agglomeration; Clusters; Cities.;

Other versions of this item:

Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
L0 - Industrial Organization - - General
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
L6 - Industrial Organization - - Industry Studies: Manufacturing
O3 - Economic Development, Technological Change, and Growth - - Technological Change
R2 - Urban, Rural, and Regional Economics - - Household Analysis

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This page was last updated on 2009-11-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.