Do local start-ups and knowledge spillovers matter for firm-level R&D investment?

Frank Crowley and Declan Jordan ()

Urban Studies, 2022, vol. 59, issue 5, 1085-1102

Abstract: What happens to firm-level research and development (R&D) when urban locations have more knowledge spillovers and are more entrepreneurial? This article explores the potential tension between knowledge spillovers, start-ups and innovation effort in existing firms. The relationship is empirically tested using Swedish firm-level data and municipality-level data on start-ups. The results indicate that having more start-ups in urban municipalities is associated with lower firm-level R&D expenditure. However, this relationship is not linear, where the negative association between the level of new firm formation and firm-level R&D expenditure decreases with scale. This suggests that the relationship between local entrepreneurship and a business’ R&D decisions is conditioned by the extent of that entrepreneurship.

Keywords: agglomeration/urbanisation; economic processes; entrepreneurial cities; innovation; technology/smart cities; é›†è š/城市化; ç» æµŽè¿‡ç¨‹; 创业型城市; 创新; 技术/智慧城市 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:59:y:2022:i:5:p:1085-1102

DOI: 10.1177/0042098021995105

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