Does Crowdfunding Democratize Success? Revisiting the Effects of Agglomeration and Localized Knowledge Spillover on Creative Projects

41 Pages Posted: 20 Nov 2019

See all articles by Sofia Johan

Sofia Johan

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

Jon Taylor

Florida Atlantic University - Finance

Date Written: November 10, 2019

Abstract

This study examines the effect of agglomeration and localized knowledge spillover on reward-based crowdfunding outcomes in the United States. By examining art projects specifically, we can measure how creative projects benefit from agglomeration or clustering, measured by the proportion of individuals employed in creative class jobs. We find that crowdfunding success among metro and non-metro counties is not homogenous, and that clustering among Creative Class or Bohemia Class workers leads to greater fundraising amounts. Our findings also suggest a mitigating effect of knowledge spillover, as projects originating from high natural amenity counties without high concentrations of Creative Class or Bohemia Class workers raise less money, supporting the Localized Knowledge Spillover Theory of Entrepreneurship.

Keywords: Art, Crowdfunding, Entrepreneurial Finance, Entrepreneurship, FinTech, Geography

JEL Classification: G23, L26, M13, R10, R12, Z1

Suggested Citation

Johan, Sofia A. and Taylor, Jon, Does Crowdfunding Democratize Success? Revisiting the Effects of Agglomeration and Localized Knowledge Spillover on Creative Projects (November 10, 2019). Available at SSRN: https://ssrn.com/abstract=3484487 or http://dx.doi.org/10.2139/ssrn.3484487

Sofia A. Johan (Contact Author)

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 )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Jon Taylor

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

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