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Small Business Economics

, Volume 41, Issue 1, pp 215–218 | Cite as

Comment on Acs and Varga: Entrepreneurship, agglomeration and technological change

  • Torben KlarlEmail author
Article

Abstract

Acs and Varga (Small Bus Econ 24:323–334, 2005) employ GEM cross-national, industrial-level data for nine selected European countries in order to investigate the link between entrepreneurship, agglomeration and technological growth. Testing the knowledge production function in the spirit of Jones (J Polit Econ 103:759–784, 1995), they find that both agglomeration and entrepreneurship exhibit a statistically significantly positive effect on technological change. This comment mainly argues that this investigation only focuses on the growth rates but leaves out the effects induced by agglomeration and entrepreneurship on the level of knowledge. This might lead to biased estimates.

Keywords

Agglomeration Entrepreneurship Knowledge spillovers Endogenous growth 

Notes

Acknowledgments

The author would like to thank one anonymous referee for comments and suggestions that helped to improve the paper considerably. All remaining errors are, of course, my own.

References

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Copyright information

© Springer Science+Business Media, LLC. 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of AugsburgAugsburgGermany

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