Entrepreneurship, Agglomeration and Technological Change

A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogeni...

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Published in:	Small business economics Vol. 24; no. 3; pp. 323 - 334
Main Authors:	Ács, Zoltán J., Varga, Attila
Format:	Journal Article
Language:	English
Published:	Dordrecht Springer 01.04.2005 Springer Nature B.V
Subjects:	Agglomeration Business economics Correlation analysis Economic concentration Economic geography Economic growth Economic growth models Economic growth theories Economic models Economic research Economic theory Empirical research Entrepreneurs Entrepreneurship European Union Knowledge Knowledge transfer Location of enterprises Location of industry R&D Regional economics Research & development Research & development expenditures Research and development Small and medium sized enterprises Spillover effect Studies Technological change Technological innovation
ISSN:	0921-898X, 1573-0913
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Abstract	A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union.
AbstractList	A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union. Reprinted by permission of Springer A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union. A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union. [PUBLICATION ABSTRACT]
Author	Ács, Zoltán J. Varga, Attila
Author_xml	– sequence: 1 givenname: Zoltán J. surname: Ács fullname: Ács, Zoltán J. – sequence: 2 givenname: Attila surname: Varga fullname: Varga, Attila
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References	Michael Polanyi (CR32) 1967 Philip Aghion (CR5) 1992; 60 Zoltan J. Acs (CR2) 2004; 38 Mark Casson (CR14) 1995 Attila Varga (CR50) 2001 Paul Samuelson (CR38) 1983; 21 Paul Segerstrom (CR43) 1990; 80 CR34 Antonio Ciccone (CR18) 1996; 86 CR33 Zoltan J. Acs (CR3) 2003 Paul Krugman (CR29) 1991; 99 Masahisa Fujita (CR20) 2002 CR4 Attila Varga (CR48) 1998 Joseph Schumpeter (CR40) 1934 Adam Jaffe (CR25) 1993; 108 Claudio Michelacci (CR30) 2003; 113 Scott Shane (CR45) 2000; 25 Keneth Arrow (CR6) 1974; 64 Boyan Jovanovic (CR27) 1982; 50 David Blau (CR11) 1987; 95 Masahisa Fujita (CR21) 1999 Charles Jones (CR26) 1995; 103 Attila Varga (CR51) 2004; 38 Richard Baldwin (CR10) 2003 Paul Romer (CR35) 1986; 94 Israel M. Kirzner (CR28) 1973 Martin Carree (CR13) 2003 Paul Romer (CR37) 1996; 86 James Schmitz (CR39) 1989; 97 CR52 Joseph Schumpeter (CR41) 1947; 7 David Audretsch (CR7) 1995 Zoltan J. Acs (CR1) 2002; 31 Paul Segerstrom (CR42) 1991; 99 Corinne Autant-Bernard (CR9) 2001; 30 Attila Varga (CR49) 2000; 40 Timothy Bresnahan (CR12) 2001; 10 Scott Shane (CR44) 1996; 22 David Audretsch (CR8) 2004; 38 Ariel Pakes (CR31) 1980; 5 Antonio Ciccone (CR17) 2002; 46 CR24 Richard Caves (CR15) 1998; 36 CR23 Paul Romer (CR36) 1990; 98 Zvi Griliches (CR22) 1979; 10 Manfred Fischer (CR19) 2003; 37 John Sutton (CR47) 1997; 35 Leonard K. Cheng (CR16) 1992; 82 Robert Solow (CR46) 1957; 6 Halbert L. White (CR53) 1980; 48
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SubjectTerms	Agglomeration Business economics Correlation analysis Economic concentration Economic geography Economic growth Economic growth models Economic growth theories Economic models Economic research Economic theory Empirical research Entrepreneurs Entrepreneurship European Union Knowledge Knowledge transfer Location of enterprises Location of industry R&D Regional economics Research & development Research & development expenditures Research and development Small and medium sized enterprises Spillover effect Studies Technological change Technological innovation
Title	Entrepreneurship, Agglomeration and Technological Change
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