Entrepreneurial ecosystems and industry knowledge: does the winning region take all?

Yating Li, Martin Kenney (), Donald Patton and Abraham Song
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Yating Li: Nanjing Audit University
Martin Kenney: University of California
Donald Patton: University of California
Abraham Song: Pepperdine University

Small Business Economics, 2023, vol. 61, issue 1, No 8, 153-172

Abstract: Abstract Entrepreneurial ecosystems (EE) are composed not only of startups but also the organizations that support them. Theory has been ambivalent about whether an EE is spatially bounded or includes distant organizations. This exploratory study uses a time series of all Internet industry initial public offerings (IPO) to explore the locational changes not only of startups but also four key EE service providers: lawyers, investment bankers, venture capitalists, and board directors. We find that while the startups became only slightly more concentrated, the EE service providers concentrated more rapidly, as an industry center in Silicon Valley emerged. Our results suggest that over the industry life cycle, industry knowledge exhibits a tendency to spatially concentrate, and this results in a concentration of industry-specific EE service providers that is even greater than the more gradual concentration of startups. As a result, startups, wherever they are located, increasingly source EE services from the industrial knowledge concentration.

Keywords: Entrepreneurial ecosystems; Venture capital; Internet; Industry knowledge; Law firms; Silicon Valley (search for similar items in EconPapers)
JEL-codes: G24 M13 O32 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11187-022-00681-y

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