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Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany

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  • Hector Rocha
  • Rolf Sternberg

Abstract

This paper is about the impact of clusters on entrepreneurship at the regional level. Defining entrepreneurship as the creation of new organisations and clusters as a geographically proximate group of interconnected firms and associated institutions in related industries, this paper aims to answer three research questions : first, do clusters matter to entrepreneurship at the regional level? Second, if clusters are associated with different levels of entrepreneurship, what explains those differences? Third, what do the answers to the previous questions imply for academics and policy makers? To answer these questions, this paper distinguishes between clusters and industrial agglomerations and advances a theoretical model and empirical research to explain the impact of clusters on entrepreneurship at the regional level. This paper uses the 97 German planning regions as units of analysis to test the hypotheses. Using hypotheses testing and OLS fixed-effects model, this paper finds that clusters do have an impact on entrepreneurship at the regional level, but industrial agglomerations do not. Implications for academics and policy makers and suggestions for future research are given in the concluding section. Copyright Springer 2005

Suggested Citation

  • Hector Rocha & Rolf Sternberg, 2005. "Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany," Small Business Economics, Springer, vol. 24(3), pages 267-292, February.
    • Handle: RePEc:kap:sbusec:v:24:y:2005:i:3:p:267-292
    DOI: 10.1007/s11187-005-1993-9
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    References listed on IDEAS

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    1. André Rodríguez‐Pose & Glauco Arbix, 2001. "Strategies of Waste: Bidding Wars in the Brazilian Automobile Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(1), pages 134-154, March.
    2. Hector O. Rocha & Sumantra Ghoshal, 2006. "Beyond Self‐Interest Revisited," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 585-619, May.
    3. Hector Rocha, 2004. "Entrepreneurship and Development: The Role of Clusters," Small Business Economics, Springer, vol. 23(5), pages 363-400, October.
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