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Entrepreneurship, Agglomeration and Technological Change

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Abstract

A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union.

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Authors and Affiliations

  1. Max-Plank-Institute for Research into Economic Systems, Jena, Germany

    Zoltán J. Ács

  2. Merrick School of Business, University of Baltimore, Baltimore, MD, 21201, USA

    Zoltán J. Ács

  3. Center for Research in Economic Policy (CREP), Department of Economics Faculty of Business and Economics , University of Pécs, Pécs, Rákóczi 80, H-7622, Hungary

    Attila Varga

Authors
  1. Zoltán J. Ács
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  2. Attila Varga
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Correspondence to Zoltán J. Ács.

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JEL CLASSIFICATION: O3, R1, J24, M13

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Ács, Z.J., Varga, A. Entrepreneurship, Agglomeration and Technological Change. Small Bus Econ 24, 323–334 (2005). https://doi.org/10.1007/s11187-005-1998-4

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  • DOI: https://doi.org/10.1007/s11187-005-1998-4

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