Green Entrepreneurship: Should Legislators Invest in the Formation of Sustainable Hubs?

Lars Speckemeier and Dimitrios Tsivrikos
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Lars Speckemeier: Division of Psychology and Language Sciences, University College London, 26 Bedford Way, London WC1H 0AP, UK
Dimitrios Tsivrikos: Division of Psychology and Language Sciences, University College London, 26 Bedford Way, London WC1H 0AP, UK

Sustainability, 2022, vol. 14, issue 12, 1-26

Abstract: This study explores which local factors affect the creation of sustainable or green startups in a geographical area. The analysis aims to help regional legislators get a more nuanced view of regional economic and sustainable policymaking and to promote a transition toward a greener economy. Building on knowledge spillover theory, results from 4301 companies across Europe show that the driving factors for the emergence of green startups go beyond funding opportunities. Knowledge exchange and industry networks are equally if not more important in attracting green entrepreneurs. Results also reveal that green startups are more likely than non-green startups to change their location. Of those who change their location, green founders prefer large cities and have a negative inclination to establish their companies in small cities. Companies in the sustainable information technology (IT) industry are less likely to change their location, whereas green manufacturing companies are more likely to change. In summation, results indicate that the location choices and resulting evolution of clusters for green startups are based on a number of variables, including local knowledge stock and spillovers, company density, availability of educated talent, and industry affiliations.

Keywords: green entrepreneurship; small cities; economic development; policymaking; hub formation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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