Abstract

http://ssrn.com/abstract=1473767
 
 

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Clusters of Entrepreneurship


Edward L. Glaeser


Harvard University - John F. Kennedy School of Government, Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

William R. Kerr


Harvard University - Entrepreneurial Management Unit

Giacomo A. M. Ponzetto


CREI - Universitat Pompeu Fabra

September 15, 2009

Harvard Business School Entrepreneurial Management Working Paper No. 10-019

Abstract:     
Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people.

Number of Pages in PDF File: 54

Keywords: entrepreneurship, industrial organization, Chinitz, agglomeration, clusters, cities

JEL Classification: J2, L, L1, L2, L6, O3, R2

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Date posted: September 16, 2009  

Suggested Citation

Glaeser, Edward L. and Kerr, William R. and Ponzetto, Giacomo A. M., Clusters of Entrepreneurship (September 15, 2009). Harvard Business School Entrepreneurial Management Working Paper No. 10-019. Available at SSRN: http://ssrn.com/abstract=1473767 or http://dx.doi.org/10.2139/ssrn.1473767

Contact Information

Edward L. Glaeser
Harvard University - John F. Kennedy School of Government, Department of Economics ( email )
Littauer Center
Room 315A
Cambridge, MA 02138
United States
617-496-2150 (Phone)
617-496-1722 (Fax)
Brookings Institution
1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
William R. Kerr (Contact Author)
Harvard University - Entrepreneurial Management Unit ( email )
Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
Giacomo A. M. Ponzetto
CREI - Universitat Pompeu Fabra ( email )
Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain
+34 93 542 2829 (Phone)
+34 93 542 2826 (Fax)
HOME PAGE: http://www.crei.cat/people/ponzetto/welcome.html
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