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Localized competition in the knowledge spillover theory of entrepreneurship

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  • Plummer, Lawrence A.
  • Acs, Zoltan J.

Abstract

The knowledge spillover theory of entrepreneurship predicts that the relationship between new knowledge and entrepreneurial activity depends on the commercialization efficiency of incumbents. We extend the theory to contend that localized competition impedes entrepreneurial activity by reducing the incentive to exploit new knowledge, and we test this conjecture using spatial panel estimation. We find a positive relationship between new knowledge and entrepreneurial activity, which is negatively moderated by localized competition. We also find that greater agglomeration counteracts the moderating effect localized competition has on the relationship between new knowledge and entrepreneurial activity.

Suggested Citation

  • Plummer, Lawrence A. & Acs, Zoltan J., 2014. "Localized competition in the knowledge spillover theory of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(1), pages 121-136.
  • Handle: RePEc:eee:jbvent:v:29:y:2014:i:1:p:121-136
    DOI: 10.1016/j.jbusvent.2012.10.003
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    Cited by:

    1. Hervas-Oliver, Jose-Luis & Lleo, María & Cervello, Roberto, 2017. "The dynamics of cluster entrepreneurship: Knowledge legacy from parents or agglomeration effects? The case of the Castellon ceramic tile district," Research Policy, Elsevier, vol. 46(1), pages 73-92.
    2. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    3. Niccolò Ghio & Massimiliano Guerini & Cristina Rossi-Lamastra, 2016. "University knowledge and the creation of innovative start-ups: an analysis of the Italian case," Small Business Economics, Springer, vol. 47(2), pages 293-311, August.
    4. Zoltan Acs & Thomas Åstebro & David Audretsch & David T. Robinson, 2016. "Public policy to promote entrepreneurship: a call to arms," Small Business Economics, Springer, vol. 47(1), pages 35-51, June.
    5. repec:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9474-7 is not listed on IDEAS
    6. Pontus Braunerhjelm & Ding Ding & Per Thulin, 2016. "Labour as a knowledge carrier: how increased mobility influences entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1308-1326, December.
    7. Erik E. Lehmann & Matthias Menter, 2016. "University–industry collaboration and regional wealth," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1284-1307, December.
    8. Esteban Lafuente & László Szerb & Zoltan J. Acs, 2016. "Country level efficiency and national systems of entrepreneurship: a data envelopment analysis approach," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1260-1283, December.
    9. repec:krk:eberjl:v:4:y:2016:i:1:p:129-159 is not listed on IDEAS
    10. Feser, Daniel & Proeger, Till, 2015. "Asymmetric information as a barrier to knowledge spillovers in expert markets," Center for European, Governance and Economic Development Research Discussion Papers 259, University of Goettingen, Department of Economics.
    11. Daniel Feser & Till Proeger, 2017. "Asymmetric information as a barrier to knowledge spillovers in expert markets," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 211-232, March.
    12. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-017-9842-1 is not listed on IDEAS
    13. Balázs Páger & Éva Komlósi, 2015. "Agglomeration effects on countries' competitiveness and entrepreneurial performance," ERSA conference papers ersa15p503, European Regional Science Association.
    14. repec:fan:macoma:v:html10.3280/maco2018-001004 is not listed on IDEAS
    15. Ivana Komarkova & Dimitri Gagliardi & Johannes Conrads & Antonio Collado, 2015. "Entrepreneurship Competence: An Overview of Existing Concepts, Policies and Initiatives – Final report," JRC Working Papers JRC96531, Joint Research Centre (Seville site).
    16. Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, 2015. "Does innovativeness reduce startup survival rates?," Journal of Business Venturing, Elsevier, vol. 30(4), pages 564-581.
    17. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.

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    Knowledge spillovers; New ventures; Geography;

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