The Differential Impact of the Internet on Spurring Regional Entrepreneurship

28 Pages Posted: 7 Sep 2010

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Sofia Johan

Florida Atlantic University - Finance; University of Aberdeen; Tilburg Law and Economics Center (TILEC)

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Abstract

This paper studies the effect of the introduction of government-provided Internet technology to rural communities (Internet communities) on regional entrepreneurship. Entrepreneurship increases among larger Internet communities, as the Internet spurs entrepreneurial activities by enabling agglomeration across areas that have a preexisting cluster of real entrepreneurial activities. There is, however, a decrease in entrepreneurship among smaller and more geographically remote Internet communities, as the Internet facilitates the consumption of items and services not produced within such smaller communities. Overall, the key finding is that virtual entrepreneurial clusters are not independent of real entrepreneurial clusters.

Suggested Citation

Cumming, Douglas J. and Johan, Sofia A., The Differential Impact of the Internet on Spurring Regional Entrepreneurship. Entrepreneurship Theory and Practice, Vol. 34, No. 5, pp. 857-883, September 2010, Available at SSRN: https://ssrn.com/abstract=1672907 or http://dx.doi.org/10.1111/j.1540-6520.2009.00348.x

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

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HOME PAGE: http://booksite.elsevier.com/9780124095373/

Sofia A. Johan

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

University of Aberdeen ( email )

Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

Tilburg Law and Economics Center (TILEC) ( email )

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Tilburg, 5000 LE
Netherlands

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