AbstractsEconomics

Entrepreneurial Regions: Causes and Consequences of the Spatial Variation of Entrepreneurship

by Benito Felix Modrego




Institution: University of Groningen
Department:
Year: 2016
Posted: 02/05/2017
Record ID: 2068447
Full text PDF: http://hdl.handle.net/11370/4197d20b-d5dc-4581-bcfc-aedef5e3fb89


Abstract

The main objective of this thesis is to contribute to the understanding of the spatial variation in entrepreneurship, and its relationship with regional growth and development. The study is conducted using Chile as the empirical setting. The results indicate that conditions for general entrepreneurship, such as access to credit and business dynamism, are not concentrated in the core areas, either nationally or within regions. By contrast, framework conditions enabling innovation and more productive entrepreneurship, are extremely concentrated in core areas. In addition, econometric estimates confirm that there are more firms per capita in areas of greater market access. However, market access may also bring a negative effect, through increased wages, on the regional entrepreneurship rates, as wages are the opportunity cost of choosing self-employment. Econometric estimates support this trade-off. With regard to the implications of the spatial variation of entrepreneurship, the results support the importanceof local entrepreneurial activity for local innovation. Some policy implications stemming from the results are: i) a clearer distinction between the different forms of entrepreneurship and the different policy purposes they serve; ii) re-orientation of entrepreneurship support policies towards a greater focus on more innovative and productive forms of entrepreneurship; iii) the use of place-based policies that could help build and/or strengthening local conditions enabling the more productive forms of entrepreneurship; and iv) a more systemic approach to regional innovation where entrepreneurship is a central focus of innovation support policies, complemented by strategic place-based investments in technological infrastructure. Advisors/Committee Members: Brakman, Steven (assessment_committee), de Groot, H (assessment_committee), Rodriguez-Pose, Andres (assessment_committee).