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Agglomeration Economies and Entrepreneurship in the ICT Industry

Frank Oort and Erik Stam

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: In this study indicators of agglomeration economies and their effect on entrepreneurship in the ICT industry are analysed in diverse urban contexts. Agglomeration economies have a stronger impact on new firm formation than on the growth of incumbent firms. Concentration and diversity both have a positive effect on new firm formation as well as on the growth of incumbent firms, while competition only has a positive effect on new firm formation. It is especially the effects of industrial diversity that are revealed to be sensitive to urban contexts: positive effects on new firm formation are attached to the connected cities and to the highly urbanized Randstad, and positive effects on firm growth to the intermediate zone, the connected cities and urban municipalities.

Keywords: Agglomeration Economies; Entrepreneurship; ICT Iindustry; Location; Spatial Externalities; Urban Regimes (search for similar items in EconPapers)
JEL-codes: L11 L96 M M13 O18 O32 R12 (search for similar items in EconPapers)
Date: 2006-03-29
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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