Clusters and entrepreneurship

By Mercedes Delgado, Michael E. Porter, Scott Stern. 2010

926 citations recorded by the source corpus.

This paper examines the role of regional clusters in regional entrepreneurship. We focus on the distinct influences of convergence and agglomeration on growth in the number of start-up firms as well as in employment in these new firms in a given region-industry. While reversion to the mean and diminishing returns to entrepreneurship at the region-industry level can result in a convergence effect, the presence of complementary economic activity creates externalities that enhance incentives and reduce barriers for new business creation. Clusters are a particularly important way through which location-based complementarities are realized. The empirical analysis uses a novel panel dataset from the Longitudinal Business Database of the Census Bureau and the U.S. Cluster Mapping Project (Porter, 2003). Using this dataset, there is significant evidence of the positive impact of clusters on entrepreneurship. After controlling for convergence in start-up activity at the region-industry level, industries located in regions with strong clusters (i.e. a large presence of other related industries) experience higher growth in new business formation and start-up employment. Strong clusters are also associated with the formation of new establishments of existing firms, thus influencing the location decision of multiestablishment firms. Finally, strong clusters contribute to start-up firm survival.

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Citations in the corpus

On the spatial stickiness of UK new firm formation rates (2014, background): “Porter (2000) and Delgado et al. (2010) argue and provide evidence that the presence of clusters surrounding a region-industry enhances new firm formation growth to the extent that individuals working within or around a cluster are better equipped to perceive opportunities by”
The Empirics of Agglomeration Economies (2014, unknown): “Using the same dataset, and in the spirit of papers on determinants of local industrial employment, Delgado et al. (2010) augment the specification with dynamic effects and argue that mean reversion effects co-exist with agglomeration gains. Among contributions on other countries, Figueiredo et al. ”
Towards a process theory of entrepreneurial ecosystems (2018, background): “Clusters create supportive environments for entrepreneurship by “enabling better access to a more diverse range of inputs and complementary products” (Delgado et al., 2010 p. 496).”
Structure and evolution of global cluster networks: evidence from the aerospace industry (2016, unknown): “This has been supported by empirical studies which show that industrial clusters matter for regional performance, including entrepreneurship, innovation, and job creation (Delgado et al., 2010, 2014; Feldman and Audretsch, 1999; Porter, 2003).”
Logistics agglomeration in the US (2014, background): “Intra-cluster competition drives firms to succeed by increasing their productivity , supercharging innovation, and by stimulating new business formation (Porter, 2000; Delgado et al., 2010).”
Entrepreneurial ecosystem research: present debates and future directions (2018, unknown): “Similarly to previous reviews (e.g., Barreto, 2010; Di Stefano, Peteraf, and Verona, 2010; Zott, Amit, and Massa, 2011; Felekoglu, and Moultrie, 2013; West, and Bogers, 2013; Ghezzi et al., 2017), the study adopts a multi-step process.”
Clusters of Entrepreneurship (2009, unknown): “(1996), Delgado et al. (2008, 2009), Dunne et al. (1989a,b), Haltiwanger et al. (this issue), and Kerr and Nanda (2009a,b). lists physical locations of establishments rather than locations of incorporation, circumventing issues related to higher legal incorporations in states like Delaware. Jarmin a”
Agglomeration and Innovation (2014, unknown): “(1992, 2010), Glaeser and Kerr (2009), and Delgado et al. (2010). It is important to recognize that the agglomeration of entrepreneurship for innovation and growth-oriented firms does not apply more broadly, where studies instead document a local bias of entrepreneurship (e.”