Working Paper: NBER ID: w19013
Authors: Aaron Chatterji; Edward L. Glaeser; William R. Kerr
Abstract: This paper reviews recent academic work on the spatial concentration of entrepreneurship and innovation in the United States. We discuss rationales for the agglomeration of these activities and the economic consequences of clusters. We identify and discuss policies that are being pursued in the United States to encourage local entrepreneurship and innovation. While arguments exist for and against policy support of entrepreneurial clusters, our understanding of what works and how it works is quite limited. The best path forward involves extensive experimentation and careful evaluation.
Keywords: No keywords provided
JEL Codes: H70; L26; L52; L53; M13; O25; O38; R00; R10; R12; R50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| initial levels of entrepreneurship in a city (L26) | subsequent employment growth (J68) |
| policies promoting clusters of small-scale entrepreneurs (L53) | overall economic activity (E66) |
| presence of skilled immigrants (J61) | innovation levels (O31) |
| presence of skilled immigrants (J61) | entrepreneurship in technical fields (O31) |
| local innovation (O35) | regional economic performance (R11) |