Does related variety foster regional entrepreneurship? Evidence from European regions

Jeroen Content, Koen Frenken and Jacob Jordaan

Regional Studies, 2019, vol. 53, issue 11, 1531-1543

Abstract: Several studies have identified positive effects of related variety among a region’s economic sectors on employment growth. However, the exact mechanisms through which knowledge spillovers between related sectors translate into employment growth are yet to be demonstrated. Entrepreneurship may be a possible transmission mechanism via which spillovers lead to the creation of new jobs. In this paper, we analyze novel pan-European regional survey data that distinguishes between opportunity- and necessity-driven entrepreneurs and we find that related variety has a positive effect on opportunity-driven entrepreneurship. In addition, we also find that different ‘varieties of capitalism’ influence regional entrepreneurship.

Date: 2019
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DOI: 10.1080/00343404.2019.1595565

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