Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany

Posted: 9 Mar 2013

See all articles by Hector O. Rocha

Hector O. Rocha

IAE Business School - Universidad Austral

Rolf Sternberg

University of Cologne - Institute for Economic Policy

Date Written: February 9, 2005

Abstract

This paper is about the impact of clusters on entrepreneurship at the regional level. Defining entrepreneurship as the creation of new organisations and clusters as a geographically proximate group of interconnected firms and associated institutions in related industries, this paper aims to answer three research questions: first, do clusters matter to entrepreneurship at the regional level? Second, if clusters are associated with different levels of entrepreneurship, what explains those differences? Third, what do the answers to the previous questions imply for academics and policy makers? To answer these questions, this paper distinguishes between clusters and industrial agglomerations and advances a theoretical model and empirical research to explain the impact of clusters on entrepreneurship at the regional level. This paper uses the 97 German planning regions as units of analysis to test the hypotheses. Using hypotheses testing and OLS fixed-effects model, this paper finds that clusters do have an impact on entrepreneurship at the regional level, but industrial agglomerations do not. Implications for academics and policy makers and suggestions for future research are given in the concluding section.

Keywords: entrepreneurship, clusters, industrial agglomerations, socioeconomics, neoclassical economics, Germany

JEL Classification: D62, D63, D23, E24, J23, L16, M13, O10, R11, R12, R30

Suggested Citation

Rocha, Hector O. and Sternberg, Rolf, Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany (February 9, 2005). Small Business Economics, Vol. 24, No. 3, 2005, Available at SSRN: https://ssrn.com/abstract=2229926

Hector O. Rocha (Contact Author)

IAE Business School - Universidad Austral ( email )

Buenos Aires
Argentina

HOME PAGE: http://www.iae.edu.ar/web2005_eng/home/home.html

Rolf Sternberg

University of Cologne - Institute for Economic Policy ( email )

Pohligstr. 1
Cologne, D-50969
Germany

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