Abstract
Regions compete to bring wealth creation and high-paying jobs to their constituents through the creation of small start-ups. Different authors identify different factors that influence this activity leaving policy makers wondering about the right set of ingredients. These factors include many that are affected by the knowledge economy. To identify the essential ingredients, we studied 361 Metropolitan Statistical Areas in the USA. We examined factors such as capital, education, engineering and science degrees, top business school presence, presence of other medium and large companies in the area, the number of incubators, high speed internet connectivity, creativity, population size, cluster formation, and the available workforce to assess their contribution to the creation of new businesses in nontech as well as high tech. Statistical tests indicate that factors such as, in further tests, technology maturation activities such as research, venture funding, and telecommunications infrastructure, were found to be important for technology startups. Attraction and creation of medium and large sized businesses helped the small start-ups in creating markets for their products.
Similar content being viewed by others
References
Phan P, Foo M (2004) Technological entrepreneurship in emerging regions. J Bus Venturing 19:1–6
Birch DL (1987) Job creation in America: how our small companies put the most people to work. Free Press, New York
Kirchhoff BA, Phillips BD (1988) The effect of firm formation and growth on job creation in the United States. J Bus Venturing 3:261–272
Park JS (2005) Opportunity recognition and product innovation in entrepreneurial hi-tech start-ups: a new perspective and supporting case study. Technovation 25:739–752
Oakey RP (2003) Technical entrepreneurship in high technology small firms: some observations on the implications for management. Technovation 23:679–688
Reynolds PD (1987) New firms: societal contribution versus survival potential. J Bus Venturing 2:231–246
Betz F (1987) Managing technology: competing through new ventures, innovation, and corporate research. Prentice-Hall, Englewood Cliffs, New Jersey
Malecki EJ (1997) Technology and economic development. Addison Wesley Longman, Harlow, England
Castells M, Hall P (1994) Technopoles of the world: the making of 21st century industrial complexes. Routledge, NY
Smilor R, Gibson D, Dietrich G (1990) University spin-out companies: technology start-ups from UT-Austin. J Bus Venturing 59:63–76
Florida R, Gates G (2002) Technology and tolerance. The Brookings Review 20:32–36
Venkataraman S (2004) Regional transformation through technological entrepreneurship. J Bus Venturing 19:153–172
Miller D (1983) The correlates of entrepreneurship in three types of firms. Manag Sci 29:770–791
Porter M (1990) The competitive advantage of nations. The Free Press, New York
Thompson C (1988) High technology development and recession: the local experience in the US, 1980–1982. Econ Dev Q 2(2):153–167
Bruno AV, Tyebjee TT (1982) The environment for entrepreneurship. In: Kent CA, Sexton DL, Vesper KH (eds) Encyclopedia of entrepreneurship. Prentice-Hall, Englewood Cliffs, NJ, pp 288–307
Kassicieh SK, Radosevich R, Umbarger J (1996) A comparative study of entrepreneurship incidence among inventors in national laboratories. Entrep Theory Pract 20:33–49
Linton JD (2006) Entrepreneurship today. Technovation 26:139–141
Carayannis EG, Popescu D, Sipp C, Stewart M (2006) Technological learning for entrepreneurial development (TL4ED) in the knowledge economy (KE): case studies and lessons learned. Technovation 26:419–443
Newbert SL, Gopalakrishnan S, Kirchhoff BA (2008) Looking beyond resources: exploring the importance of entrepreneurship to firm-level competitive advantage in technologically intensive industries. Technovation 28:6–19
Acs Z, Storey D (2004) Introduction: entrepreneurship and economic development. Regional Studies 38:871–877
Armington C, Acs Z (2002) The determinants of regional variation in new firm formation. Regional Studies 36:33–45
Audretsch DB, Keilbach MC, Lehmann E (2006) Entrepreneurship and economic growth. Oxford University Press, Oxford and New York
Carlsson B (2005) Innovation systems: a survey of the literature from a Schumpeterian perspective. In: Hanusch H, Pyka A (eds) The Elgar companion to neo-Schumpeterian economics. Edward Elgar, Cheltenham
DeVol R, Fogelback F (2003) Best performing cities: where America's jobs are created. Milken Institute, Santa Monica, CA
Delapierre M, Madeuf M, Savoy A (1998) NTBFs—the French case. Research Policy 26:989–1003
Anderson G (1994) Industry clustering for economic development. Econ Dev Rev 12:26–32
Kassicieh S (1998) Commercialization of public sector technology: practices and policies. In: Dorf RC (ed) The handbook of technology management. CRC Press/IEEE Press, Boca Raton, FL, pp 2/26–2/30
Kassicieh S, Radosevich R (1994) The importance of public-sector technology commercialization. In: Kassicieh S, Radosevich R (eds) From lab to market: commercialization of public-sector technology. Plenum Publishing, NY, pp 3–8
Reynolds P, Camp S, Bygrave W, Autio E, Hay M (2001) Global entrepreneurship monitor: 2001 summary report. London Business School and Babson College, London
Neck HM, Meyer GD, Cohen B, Corbett AC (2004) An entrepreneurial system view of new venture creation. J Small Bus Manage 42:190–208
Wren C (2004) Entrepreneurship and economic development: a framework for policy. Int J Entrep Innov 4:28–40
Smilor R, Matthews J (2004) University venturing: technology transfer and commercialisation in higher education. Int J Technol Transf Commer 3:111–128
Antoncic B, Hisrich RD (2003) Privatization, corporate entrepreneurship, and performance: testing a normative model. J Dev Entrep 8:197–218
Von Bargen P, Freedman D, Pages ER (2003) The rise of the entrepreneurial society. Econ Dev Q 17:315–324
Anderson AR, Li J, Harrison RT, Robson PJA (2003) The increasing role of small business in the Chinese economy. J Small Bus Manage 41:310–316
Atkinson RD, Gottlieb PD (2001) The metropolitan new economy index: benchmarking economic transformation in the nation's metropolitan areas. Progressive Policy Institute, Washington, DC
Gottlieb P, Fogarty M (2003) Educational attainment and metropolitan growth. Econ Dev Q 17:325–336
Perez MP, Sanchez AM (2003) The development of university spin-offs: early dynamics of technology transfer and networking. Technovation 23:823–831
Rasmussen E, Moen O, Gulbrandsen M (2006) Initiatives to promote commercialization of university knowledge. Technovation 26:518–533
Goetz SJ, Rupasingha A (2003) The returns on higher education: estimates for the 48 contiguous states. Econ Dev Q 17:337–351
Hsu PH, Shyu JZ, Yu HC, Yuo CC, Lo TH (2003) Exploring the interaction between incubators and industrial clusters: the case of the ITRI incubator in Taiwan. R & D Management 33:79–90
Giloth RB (2000) Learning from the field: economic growth and workforce development in the 1990s. Econ Dev Q 14:340–359
Senter R Jr (1999) The impact of government research and development spending and other factors on state economic development. Public Adm Q 23:368–384
Friedman J, Silberman J (2003) University technology transfer: do incentives, management, and location matter? J Technol Transfer 28:17–30
Premus R, Sanders N, Jain RK (2003) Role of the university in regional economic development: the US experience. Int J Technol Transf Commer 2:369–383
Zucker LG, Darby MR (2001) Capturing technological opportunity Via Japan's star scientists: evidence from Japanese firms' biotech patents and products. J Technol Transfer 26:37–58
Redding S, Schott PK (2003) Distance, skill deepening and development: will peripheral countries ever get rich? J Dev Econ 72(2):515–542
Driouchi A, Azelmad EM, Anders GC (2006) An econometric analysis of the role of knowledge in economic performance. J Technol Transfer 31:241–255
Ashton D, Green F (1996) Education, training and the global economy. Edward Elgar Publishing Limited, Cheltenham, UK
Psacharopoulos G, Woodhall M (1985) Education for development. Oxford University Press, Oxford
Honohan P, Walsh B (2002) Catching up with the leaders: the Irish hare. Brookings Pap Econ Act 2002:1–77
Lalkaka R (2002) Technology business incubators to help build an innovation-based economy. J Chang Manag 3:167–176
Sherman HD (1999) Assessing the intervention effectiveness of business incubation programs on new business start-ups. J Dev Entrep 4:117–133
Mian S (1997) Assessing and managing the university technology business incubator: an integrative framework. J Bus Venturing 12:251–285
Pohjola M (2002) The new economy: facts, impacts and policies. Inf Econ Policy 14:133–144
Horrigan JB, Wilson RH (2002) Telecommunications technologies and urban development: strategies in US cities. Int J Technol Policy Manag 2:338–354
Yoo SH, Kwak SJ (2004) Information technology and economic development in Korea: a causality study. Int J Technol 27:57–67
de Castro EA, Jensen-Butler C (2003) Demand for information and communication technology-based services and regional economic development. Pap Reg Sci 82(1):27–50
Van Der Velden M (2002) Knowledge facts, knowledge fiction: the role of ICTs in knowledge management for development. J Int Dev 14:25–37
Di Gregorio D, Kassicieh S, De Gouvea R (2005) Drivers of e-business activity in developed and emerging markets. IEEE Trans Eng Manage 52:155–166
Brenner CJ (1995) Transportation and economic development. Executive Speeches 9(4):22–24
Bruekner JK (2003) Airline traffic and urban economic development. Urban Studies 40(8):1455–1469
Coccia M (2001) A basic model for evaluating R&D performance: theory and application in Italy. R & D Management 31:453–464
Roberts EB (1991) Entrepreneurs in high technology: lessons from MIT and beyond. Oxford University Press, New York
Sorensen A (1999) R&D, learning, and phases of economic growth. J Econ Growth 4:429–445
Suarez-Villa L (2002) High technology clustering in the polycentric metropolis: a view from the Los Angeles metropolitan region. Int J Technol Manag 24:818–842
Colgan CS, Baker C (2003) A framework for assessing cluster development. Econ Dev Q 17:352–366
Chew SB, Chew R (2003) Promoting innovation in Singapore: changing the mindset. Int J Entrep Innov Manage 3:249–266
Marceau J (2002) Divining directions for development: a cooperative industry–government–public sector research approach to establishing R&D priorities. R & D Management 32:209–221
Sharma DC (2004) Technologies for the people: a future in the making. Futures 36:733–744
Cripsin-Little JE, Brereton J (1989) The role of venture capital in high technology finance. Econ Dev Rev 7:36–44
Curley M (1992) The entrepreneur's dilemma: valuing the venture capitalist's contribution. Econ Dev Rev 10:47–50
OECD (2004) Venture capital: trends and policy recommendations. OECD Papers 4(10):1–29
OECD (2000) Local partnership, clusters and SME globalisation. In: OECD conference on enhancing the competitiveness of SMEs in the global economy: strategies and policies. Bologna
Martin R, Sunley P, Turner D (2002) Taking risks in regions: the geographical anatomy of Europe's emerging venture capital market. J Econ Geogr 2:121–150
American Economic Development Council (1992) Nontraditional sources of economic development financing. Econ Dev Rev 10:20–23
Van Auken H (2002) A model of community-based venture capital formation to fund early-stage technology-based firms. J Small Bus Manage 40:287–301
Fisher PS (1988) State venture capital funds as an economic development strategy. J Am Plan Assoc 54:166–177
United Nations (2003) UN world water development report. UNESCO, Paris
Bernardes AT, Motta E, Albuquerque E da (2003) Cross-over, thresholds, and interactions between science and technology: lessons for less-developed countries. Research Policy 32(5):865–885
Bee E (2003) Knowledge networks and technical invention in America's metropolitan areas: a paradigm for high-technology economic development. Econ Dev Q 17:115–131
Ginarte JC, Park WG (1997) Determinants of patent rights: a cross-national study. Research Policy 26:283–301
Florida R (2002) The rise of the creative class. Basic Books, NY
Gelderen M, Thurik R, Bosma N (2005) Success and risk factors in the pre-startup phase. Small Bus Econ 24:365–380
Wennekers S, van Stel A, Thurik R, Reynolds P (2005) Nascent entrepreneurship and the level of economic development. Small Bus Econ 24:293–309
National Science Board (2004) Science and engineering indicators 2004, volume 2. National Science Foundation, Arlington
NBIA (2003) Incubator database. National Business Incubator Association, Athens, OH
National Science Foundation (2001) National patterns of R&D resources: 2000 data update. Division of Science Resources Statistics, Arlington, VA
Price Waterhouse Coopers (2000) Money tree report. www.moneytree.com,
Rubin SJ (2004) The cost of water and wastewater service in the United States. National Rural Water Association, Duncan, OK
Keating RJ (2003) Small business survival index 2003: ranking the policy environment for entrepreneurship across the nation. Small Business Survival Committee, Washington, D.C
Alexander D (1992) Incentives as economic development tools. Econ Dev Rev 10:64–66
Peters A, Fisher P (2004) The failures of economic development incentives. J Am Plan Assoc 70:27–37
Robinson-Barnes CJ (2000) The logic and pathologies of local and regional economic development strategies. Int J Public Adm 23:1573–1597
Halkides M, Ekanayake EM (1999) Manufacturing extension: adding value to the economic developers' toolbox. Econ Dev Rev 16:83–88
Faulk D (2002) Do state economic development incentives create jobs? An analysis of state employment tax credits. Natl Tax J 55:263–280
Lee BH, Kwun SK (2003) Public policy toward the innovation-driven economy in Korea. IntJ Entrep Innov Manage 3:267–281
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Kassicieh, S.K. The Knowledge Economy and Entrepreneurial Activities in Technology-Based Economic Development. J Knowl Econ 1, 24–47 (2010). https://doi.org/10.1007/s13132-009-0005-8
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13132-009-0005-8