Entrepreneurship: The role of clusters theoretical perspectives and empirical evidence from Germany

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Authors

  • Hector O. Rocha
  • Rolf Sternberg

External Research Organisations

  • London Business School (LBS)
  • University of Cologne
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Details

Original languageEnglish
Pages (from-to)267-292
Number of pages26
JournalSmall business economics
Volume24
Issue number3
Publication statusPublished - Apr 2005
Externally publishedYes

Abstract

This paper is about the impact of clusters on entrepreneurship at the regional level. Defining entrepreneurship as the creation of new organisations and clusters as a geographically proximate group of interconnected firms and associated institutions in related industries, this paper aims to answer three research questions : first, do clusters matter to entrepreneurship at the regional level? Second, if clusters are associated with different levels of entrepreneurship, what explains those differences? Third, what do the answers to the previous questions imply for academics and policy makers? To answer these questions, this paper distinguishes between clusters and industrial agglomerations and advances a theoretical model and empirical research to explain the impact of clusters on entrepreneurship at the regional level. This paper uses the 97 German planning regions as units of analysis to test the hypotheses. Using hypotheses testing and OLS fixed-effects model, this paper finds that clusters do have an impact on entrepreneurship at the regional level, but industrial agglomerations do not. Implications for academics and policy makers and suggestions for future research are given in the concluding section.

Keywords

    Clusters, Entrepreneurship, Germany, Industrial agglomerations, Neoclassical economics, Socioeconomics

ASJC Scopus subject areas

Cite this

Entrepreneurship: The role of clusters theoretical perspectives and empirical evidence from Germany. / Rocha, Hector O.; Sternberg, Rolf.
In: Small business economics, Vol. 24, No. 3, 04.2005, p. 267-292.

Research output: Contribution to journalArticleResearchpeer review

Download
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