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Employment Growth and Entrepreneurial Activity in Cities


  • Zoltan Acs
  • Catherine Armington


Acs Z. J. and Armington C. (2004) Employment growth and entrepreneurial activity in cities, Regional Studies38, 911-927. Recent theories of economic growth have stressed the role of externalities in generating growth. Using data from the Census Bureau that tracks all employers in the whole US private-sector economy, the impact of these externalities, as measured by entrepreneurial activity, on employment growth in Local Market Areas are examined. Differences in levels of entrepreneurial activity, diversity among geographically proximate industries and the extent of human capital are positively associated with variation in growth rates, but the manufacturing sector appears to be an exception. Acs Z. J. et Armington C. (2004) La croissance de l'emploi et l'esprit d'entreprise dans les grandes villes, Regional Studies38, 911-927. Des theories recentes de la croissance economique ont souligne l'importance des effets externes. A partir des donnees provenant du Census Bureau, institut national de la statistique qui fait le suivi de tous les employeurs dans toute l'economie privee aux Etats-Unis, cet article cherche a examiner les retombees de ces effets externes-la, mesures en termes de l'esprit d'entreprise, sur la croissance de l'emploi dans les bassins d'emplois locaux. Il s'avere que les ecarts des les niveaux de l'esprit d'entreprise, la diversite des industries a proximite, et l'importance du capital humain sont en correlation etroite avec la variation des taux de croissance, a une exception pres, le secteur industriel. Acs Z. J. und Armington C. (2004) Zunahme der Arbeitsstellen und Unternehmertatigkeit in Stadten, Regional Studies38, 911-927. Kurzlich aufgekommene Theorien wirtschaftlichen Wachstums haben die Rolle externer Effekte bei der Wachstumsentwicklung betont. Mit Hilfe von Daten des Census Bureaus, das samtliche Arbeitgeber des Privatsektors der Wirtschaft der USA erfasst, wird die Auswirkung dieser externen Effekte auf die Zunahme von Erwerbsstellen in 'Local Market Areas' durch Messung an Hand unternehmerischer Aktivitat untersucht. Es wird festgestellt, dass Unterschiede der Stufen unternehmerischer Aktivitat, Vielfalt in geographisch benachbarten Industrien und der Umfang des Menschenkapitals in positiver Verbindung mit Abweichungen bei Zuwachsraten auftreten, obschon der herstellende Sektor hierbei eine Ausnahme darstellt. Acs Z. J. y Armington C. (2004) Crecimiento en el empleo y actividad emprendedora en las ciudades, Regional Studies38, 911-927. Las teorias recientes sobre el crecimiento economico han enfatizado el rol de las externalidades en la generacion de crecimiento. Utilizando datos de la Oficina del Censo que siguen la trayectoria de todos los empresarios en la totalidad de la economia del sector privado en los Estados Unidos, examinamos el impacto de estas externalidades, medido por medio del grado de actividad emprendedora, en el crecimiento del empleo en Areas de Mercado Local. Encontramos que las diferencias en los niveles de actividad empresarial, la diversidad entre industrias que estAn geogrAficamente proximas, y el grado de capital humano estAn positivamente asociados a una variacion en los indices de crecimiento, pero el sector manufacturero parece presentar una excepcion.

Suggested Citation

  • Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 911-927.
  • Handle: RePEc:taf:regstd:v:38:y:2004:i:8:p:911-927
    DOI: 10.1080/0034340042000280938

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Timothy J. Bartik, 2010. "Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States," Book chapters authored by Upjohn Institute researchers,in: Zolton Acs (ed.), Entrepreneurship and regional Development, pages 155-169 W.E. Upjohn Institute for Employment Research.
    3. Zoltan J. Acs & Attila Varga, 2002. "Geography, Endogenous Growth, and Innovation," International Regional Science Review, , vol. 25(1), pages 132-148, January.
    4. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    5. Zoltán Ács & Attila Varga, 2005. "Entrepreneurship, Agglomeration and Technological Change," Small Business Economics, Springer, vol. 24(3), pages 323-334, February.
    6. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, January.
    7. Zoltan J. Acs & Bo Carlsson & Pontus Braunerhjelm & David B. Audretsch, "undated". "The Missing Link," Papers on Entrepreneurship, Growth and Public Policy 2005-08, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    10. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    11. Simon, Curtis J. & Nardinelli, Clark, 2002. "Human capital and the rise of American cities, 1900-1990," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 59-96, January.
    12. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    13. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    14. Carree, Martin & Klomp, Luuk, 1996. "Small Business and Job Creation: A Comment," Small Business Economics, Springer, vol. 8(4), pages 317-322, August.
    15. Catherine Armington & Zoltan Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 36(1), pages 33-45.
    16. Ian Smith & Zoltan J. Acs & Felix R. FitzRoy, 2002. "High-technology employment and R&D in cities: Heterogeneity vs specialization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(3), pages 373-386.
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    More about this item


    Economic growth; Knowledge spillovers; Entrepreneurship; Industry diversity;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs


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