Labour as a Knowledge Carrier – How Increased Mobility Influences Entrepreneurship

Journal of Technology Transfer, Volume 41, Issue 6, pp 1308–1326, December 2016

Swedish Entrepreneurship Forum Working Paper No. 2015-39

34 Pages Posted: 28 Jun 2017

See all articles by Pontus Braunerhjelm

Pontus Braunerhjelm

Royal Institute of Technology (KTH) - Department of Infrastructural and Urban Planning (INFRA); Örebro University - Swedish Entrepreneurship Forum

Ding Ding

Royal Institute of Technology (KTH)

Per Thulin

Royal Institute of Technology (KTH) - Department of Industrial Economics and Management (INDEK); Royal Institute of Technology (KTH) - Center of Excellence for Science and Innovation Studies; Swedish Entrepreneurship Forum

Date Written: October 28, 2015

Abstract

According to the knowledge-based spillover theory of entrepreneurship (KSTE), entrepreneurship is positively associated with the knowledge endowment level. An increase in knowledge expands the opportunity set, which is then exploited by heterogeneous entrepreneurs. The objective of this paper is to empirically test the validity of the KSTE by employing a detailed database comprising more than 19 million observations for the period 2001–2008 at the level of individuals, firms and regions in Sweden. Knowledge is claimed to be partly embodied in labour, implying that an increase in labour mobility can be expected to influence knowledge endowment at the regional level. Our dependent variable is an individual who has remained in a region throughout the time period considered. Controlling for a number of other variables, inter-regional labour inflows and intra-regional mobility levels are shown to exert a strong positive effect on entrepreneurship. This contrasts with inter-regional outflows, which negatively affect entrepreneurial entry. Another noteworthy result is that the probability of exploiting an increased knowledge stock through entrepreneurship increases by 15 percentage points if the individual has previous experience in starting a firm.

Keywords: Entrepreneurship, Knowledge-Based Spillover Theory of Entrepreneurship, Knowledge Diffusion, Labour Mobility

JEL Classification: J61, L26, O33

Suggested Citation

Braunerhjelm, Pontus and Ding, Ding and Thulin, Per, Labour as a Knowledge Carrier – How Increased Mobility Influences Entrepreneurship (October 28, 2015). Journal of Technology Transfer, Volume 41, Issue 6, pp 1308–1326, December 2016, Swedish Entrepreneurship Forum Working Paper No. 2015-39, Available at SSRN: https://ssrn.com/abstract=2993244

Pontus Braunerhjelm (Contact Author)

Royal Institute of Technology (KTH) - Department of Infrastructural and Urban Planning (INFRA) ( email )

SE-100 44 Stockholm
Sweden
+46 8 790 9114 (Phone)
+46 8 411 7436 (Fax)

Örebro University - Swedish Entrepreneurship Forum ( email )

Södra Kungstornet
Kungsgatan 33, 7tr
Stockholm, 11156
Sweden

Ding Ding

Royal Institute of Technology (KTH) ( email )

Lindstedtsvägen 30-100 44
Stockholm, SE-100 44
Sweden

Per Thulin

Royal Institute of Technology (KTH) - Department of Industrial Economics and Management (INDEK) ( email )

Stockholm, 100 44
Sweden

Royal Institute of Technology (KTH) - Center of Excellence for Science and Innovation Studies ( email )

Drottning Kristinas väg 30
Stockholm, SE-100 44
Sweden

Swedish Entrepreneurship Forum ( email )

Södra Kungstornet
Kungsgatan 33, 7tr
Stockholm, 11156
Sweden

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