Working Together or Working Apart? The Moderating Effect of Clusters on Entrepreneurship and Regional Development

Abstract

I develop a theoretical model to investigate whether clusters moderate the relationship between entrepreneurship and regional development. Distinguishing between industrial agglomerations and clusters, I use a socio-economic approach to integrate disparate theories based on their underlying assumptions. Industrial agglomerations and clusters have both positive and negative moderating effects, but clusters create better conditions to face competitive shocks. Conceptual, theoretical, and practical implications for academics and policymakers are proposed.

Keywords: Entrepreneurship, Start-ups, Clusters, Development, Externalities, Economic Growth, Assumptions, Economics, Socio-economics

JEL Classification: D62, J23, M13, R30