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Urban Start-up Districts: Mapping Venture Capital and Start-up Activity Across ZIP Codes

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  • Richard Florida
  • Karen M. King

Abstract

Previous research has identified the clustering of high-tech industries, entrepreneurial start-ups, and venture capital across metropolitan areas. Using detailed ZIP code data on start-up activity and venture capital investment, this research tests three hypotheses informed by urban theory on the clustering of innovation, entrepreneurship, and high-technology industry: (1) that start-up activity and venture capital investment will concentrate in distinct microclusters within metro areas, (2) that a substantial level of start-up activity and venture capital investment will cluster in dense urban neighborhoods or ZIP codes, and (3) that the clustering of start-ups and venture capital investment will vary by industry or type of technology. The authors find evidence to support all three. Start-up activity and venture capital investment are concentrated in a relatively small number of ZIP codes in the United States, the majority of which are in dense urban neighborhoods, and this clustering varies by industry and type of technology.

Suggested Citation

  • Richard Florida & Karen M. King, 2018. "Urban Start-up Districts: Mapping Venture Capital and Start-up Activity Across ZIP Codes," Economic Development Quarterly, , vol. 32(2), pages 99-118, May.
  • Handle: RePEc:sae:ecdequ:v:32:y:2018:i:2:p:99-118
    DOI: 10.1177/0891242418763731
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    References listed on IDEAS

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    Cited by:

    1. Jae Teuk Chin, 2020. "Location Choice of New Business Establishments: Understanding the Local Context and Neighborhood Conditions in the United States," Sustainability, MDPI, vol. 12(2), pages 1-17, January.

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