The Differential Impact of the Internet on Spurring Regional Entrepreneurship

39 Pages Posted: 19 Oct 2005 Last revised: 13 Oct 2013

See all articles by Sofia Johan

Sofia Johan

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

Douglas J. Cumming

Florida Atlantic University

Multiple version iconThere are 3 versions of this paper

Date Written: December 14, 2006

Abstract

This paper studies the effect of the introduction of government provided Internet technology to rural communities on regional entrepreneurship. Entrepreneurship increases among larger Internet communities, as the Internet spurs entrepreneurial activities by enabling agglomeration across areas that have a pre-existing cluster of real entrepreneurial activities. However, there is 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 local communities. Overall, virtual entrepreneurial clusters are not independent of real entrepreneurial clusters.

Keywords: Internet, Investment, Regional Development, Government Program

JEL Classification: M13, O18, O21, O22, O33, O38

Suggested Citation

Johan, Sofia A. and Cumming, Douglas J., The Differential Impact of the Internet on Spurring Regional Entrepreneurship (December 14, 2006). Entrepreneurship Theory and Practice, Forthcoming, Available at SSRN: https://ssrn.com/abstract=823704 or http://dx.doi.org/10.2139/ssrn.823704

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 )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

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