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


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.


Agglomeration Entrepreneurship Knowledge spillovers Endogenous growth 



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.


  1. Acs, Z. J., & Varga, A. (2005). Entrepreneurship, agglomeration and technological change. Small Business Economics, 24, 323–334.CrossRefGoogle Scholar
  2. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277–297.CrossRefGoogle Scholar
  3. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 51, 161–167.Google Scholar
  4. Falvey, R., Foster, N., & Greenaway, D. (2006). Intellectual property rights and economic growth. Review of Development Economics, 10, 700–719.CrossRefGoogle Scholar
  5. Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics, 114, 83–116.CrossRefGoogle Scholar
  6. Islam, N. (1995). Growth empirics: A panel data approach. Quarterly Journal of Economics, 110, 1127–1170.CrossRefGoogle Scholar
  7. Jones, C. I. (1995). R&D-based models of economic growth. Journal of Political Economy, 103, 759–784.CrossRefGoogle Scholar
  8. Polanyi, M. (1967). The tacit dimension. New York: Doubleday Anchor.Google Scholar

Copyright information

© Springer Science+Business Media, LLC. 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of AugsburgAugsburgGermany

Personalised recommendations