Cultural diversity and knowledge in explaining entrepreneurship in European cities

David B. Audretsch (), Maksim Belitski () and Julia Korosteleva ()
Additional contact information
David B. Audretsch: SPEA Indiana University
Maksim Belitski: University of Reading
Julia Korosteleva: University College London

Small Business Economics, 2021, vol. 56, issue 2, No 5, 593-611

Abstract: Abstract This study establishes and empirically explores the relationship between knowledge, cultural diversity and various entrepreneurial outcomes across European cities in 2008–2010. We demonstrate that the mechanism of knowledge spillover entrepreneurship is contextual and contend that cultural diversity and knowledge have differential impact on entrepreneurial outcomes across cities and countries. Cities with high cultural diversity provide more opportunities for entrepreneurship in sectors where technology and knowledge play more important role. While in technology-based sectors, we observe a decline in employment, in cities where cultural diversity is moderately high, this effect is counteracted by an increase in demand for skilful labour that is more concentrated in culturally diverse contexts. Implications for regional and national policy makers and international entrepreneurs are offered.

Keywords: Cultural diversity; Entrepreneurship; Knowledge spillover; Industry; City (search for similar items in EconPapers)
JEL-codes: I26 L25 O30 R10 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:56:y:2021:i:2:d:10.1007_s11187-019-00191-4

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DOI: 10.1007/s11187-019-00191-4

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