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Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness and Innovation

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  • Elisabeth Bublitz

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Fritsch

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Wyrwich

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

Being a "jack-of-all-trades" increases the probability of running an entrepreneurial venture successfully; but what happens to "jack-of-few-trades" who lack sufficient skills? This paper investigates a possible compensation mechanism between balanced skills and cities, and how this compensatory measure relates to performance. Specifically, we test and find support for the idea put forward by Helsley and Strange (2011) that high market thickness, such as that found in cities, can compensate for a lack of entrepreneurial skill balance. The results indicate that entrepreneurs with low skill balance benefit more from locating in cities than their counterparts with high skill balance. Innovative firms do not differ from other businesses in this respect.

Suggested Citation

  • Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2013. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness and Innovation," Jena Economic Research Papers 2013-010, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2013-010
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    References listed on IDEAS

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    Cited by:

    1. repec:oup:indcch:v:27:y:2018:i:2:p:269-287. is not listed on IDEAS
    2. Stepan Zemtsov & Vladimir Eremkin & Vera Barinova, 2015. "Factors of Attractiveness of the Leading Russian Universities Overview of Literature and Econometric Analysis of the Leading Universities," Educational Studies, Higher School of Economics, issue 4, pages 201-233.
    3. Fritsch, Michael & Wyrwich, Michael & Bublitz, Elisabeth & Sorgner, Alina, 2015. "GAW-Befragungsdaten verknüpft mit administrativen Daten des IAB : (GAW-ADIAB) Datenreport zur Gründerbefragung des Projekts SFB 580 B10 "Gründungsgeschehen und Arbeitsmarkt in ost- und westdeutsc," FDZ Datenreport. Documentation on Labour Market Data 201505_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Krieger, Alexander & Block, Joern & Stuetzer, Michael, 2018. "Skill variety in entrepreneurship: A literature review and research directions," MPRA Paper 88389, University Library of Munich, Germany.
    5. 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.
    6. Elisabeth Bublitz & Kristian Nielsen & Florian Noseleit & Bram Timmermans, 2018. "Entrepreneurship, human capital, and labor demand: a story of signaling and matching," Industrial and Corporate Change, Oxford University Press, vol. 27(2), pages 269-287.

    More about this item

    Keywords

    Agglomeration; Entrepreneurship; Balanced Skills; Thick Markets; Urban Diversity;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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