Local entrepreneurship clusters in cities
(2016) In Journal of Economic Geography 16(1). p.39-66- Abstract
We show that entrepreneurs are co-located within cities. One plausible source of such spatial clustering is local social interactions, where individuals' decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer-employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability that an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5% point higher entrepreneurial intensity, all else equal, produces between six and seven additional entrepreneurs per square kilometer, each year. Our estimates suggest a local feedback-effect in which... (More)
We show that entrepreneurs are co-located within cities. One plausible source of such spatial clustering is local social interactions, where individuals' decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer-employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability that an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5% point higher entrepreneurial intensity, all else equal, produces between six and seven additional entrepreneurs per square kilometer, each year. Our estimates suggest a local feedback-effect in which the presence of established entrepreneurs in a neighborhood influences the emergence of new local entrepreneurs. Our analysis supports the conjecture that social interaction effects constitute a mechanism by which local entrepreneurship clusters in cities develop and persist over time.
(Less)
- author
- Andersson, Martin and Larsson, Johan P.
- publishing date
- 2016-01-01
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Clusters, Entrepreneurship, Local social interactions, Neighborhood, Path dependence, Peer effects, Role models, Social network externalities
- in
- Journal of Economic Geography
- volume
- 16
- issue
- 1
- pages
- 28 pages
- publisher
- Oxford University Press
- external identifiers
-
- wos:000374189600002
- scopus:84965005992
- ISSN
- 1468-2702
- DOI
- 10.1093/jeg/lbu049
- language
- English
- LU publication?
- no
- id
- 6a7cfb61-160e-4198-a849-6b4d6d3c270f
- date added to LUP
- 2016-10-10 11:34:39
- date last changed
- 2025-07-27 04:58:38
@article{6a7cfb61-160e-4198-a849-6b4d6d3c270f,
abstract = {{<p>We show that entrepreneurs are co-located within cities. One plausible source of such spatial clustering is local social interactions, where individuals' decisions to become entrepreneurs are influenced by entrepreneurial neighbors. Using geo-coded matched employer-employee data for Sweden, we find that sharing residential neighborhood with established entrepreneurs has a statistically significant and robust influence on the probability that an individual leaves employment for entrepreneurship. An otherwise average neighborhood with a 5% point higher entrepreneurial intensity, all else equal, produces between six and seven additional entrepreneurs per square kilometer, each year. Our estimates suggest a local feedback-effect in which the presence of established entrepreneurs in a neighborhood influences the emergence of new local entrepreneurs. Our analysis supports the conjecture that social interaction effects constitute a mechanism by which local entrepreneurship clusters in cities develop and persist over time.</p>}},
author = {{Andersson, Martin and Larsson, Johan P.}},
issn = {{1468-2702}},
keywords = {{Clusters; Entrepreneurship; Local social interactions; Neighborhood; Path dependence; Peer effects; Role models; Social network externalities}},
language = {{eng}},
month = {{01}},
number = {{1}},
pages = {{39--66}},
publisher = {{Oxford University Press}},
series = {{Journal of Economic Geography}},
title = {{Local entrepreneurship clusters in cities}},
url = {{http://dx.doi.org/10.1093/jeg/lbu049}},
doi = {{10.1093/jeg/lbu049}},
volume = {{16}},
year = {{2016}},
}