Entrepreneurship, Geography, and American Economic Growth

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Tables and Figures......Page 9
Preface......Page 13
CHAPTER ONE Introduction......Page 15
Schumpeter After Romerian Insights......Page 17
The Definition of the Entrepreneur......Page 21
Geography: The Unit of Analysis......Page 23
American Economic Growth......Page 25
The Data......Page 26
Business Age Versus Business Size......Page 27
What Are the Research Questions?......Page 31
Organization of the Book......Page 32
Introduction......Page 35
Why Do Economies Grow?......Page 36
Neoclassical Explanations of Growth......Page 37
New Growth Theory......Page 40
Assumptions......Page 43
Geography, and New Growth Theory......Page 46
Entrepreneurial Activity and New Growth Theory......Page 50
Existence of Opportunity......Page 51
Entrepreneurial Discovery......Page 52
Opportunity Exploitation......Page 53
A Simple Theoretical Model......Page 54
Assumptions......Page 55
A Simple Theoretical Framework......Page 56
Conclusion......Page 58
Introduction......Page 59
Measurement of Firm Formation Rates and Industry Sectors......Page 62
Knowledge as a Source of Entrepreneurial Opportunity......Page 69
A Knowledge Spillover Theory of Entrepreneurship......Page 70
Variables Used for Analysis of the Formation Model......Page 74
Empirical Results from Estimation of the Formation Model......Page 82
Conclusions......Page 86
Introduction......Page 90
The Sector of Inquiry......Page 92
Variations in Regional New Firm Formation Rates in the 1990s......Page 93
Why Do Firm Formation Rates Vary Across Economic Areas?......Page 96
Human Capital Variables......Page 100
Regional Control Variables......Page 101
Empirical Results for All Services Together......Page 104
Subsectors Within the Service Industry......Page 109
Conclusions......Page 119
Introduction......Page 122
Why Do Local Employment Growth Rates Vary?......Page 124
Employment Growth Data......Page 132
Variation in Growth of Local Economic Areas......Page 133
Employment Growth from Newly Formed Establishments......Page 135
Exogenous Variables for Analyzing the Local Growth Model......Page 139
Empirical Results of Estimating the Growth Rate Model......Page 144
International Comparisons......Page 153
Conclusions......Page 155
CHAPTER SIX Summary and Theoretical Insights......Page 157
Statistical Findings on New Firm Formation......Page 158
Statistical Findings on Employment Growth......Page 162
Reconciling the Differences Between Entrepreneurship and Growth......Page 165
Introduction......Page 168
The Emergence of Entrepreneurial Policy......Page 171
Entrepreneurship and Occupational Choice Policy......Page 174
Entrepreneurship and Enabling Policies......Page 175
Entrepreneurship and Supporting Policies......Page 178
Entrepreneurship and Social Policy......Page 181
Policy Summary......Page 184
I. Introduction......Page 187
II. Brief Description of the LEEM Database......Page 188
III. Issues for Use of LEEM Data for Measurement of Formation and Growth......Page 190
IV. Definition of Firm Formations, Establishments, and Employment in the LEEM......Page 193
APPENDIX B......Page 197
APPENDIX C......Page 208
APPENDIX D......Page 217
References......Page 237
Index......Page 251