Startup Density Literature Review

McNair Project

Startup Density Literature Review
Project Information
Project Title	Startup Density Literature Review
Owner	Yunnie Huang
Start Date	10/23/2017
Deadline
Primary Billing
Notes
Has project status
Is dependent on	Urban Start-up Agglomeration
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Below is a list of citations I have gathered looking up key words related to startup density, clustering, and agglomeration.

Are All Startups Affected Similarly by Clusters by Aviad Pe'er and Thomas Keil Cited by 44. About startups, economics agglomeration

  @article{peer_are_2013,
  title = {Are all startups affected similarly by clusters? {Agglomeration}, competition, firm heterogeneity, and survival},
  volume = {28},
  issn = {0883-9026},
  shorttitle = {Are all startups affected similarly by clusters?},
  url = {http://www.sciencedirect.com/science/article/pii/S0883902612000626},
  doi = {10.1016/j.jbusvent.2012.03.004},
  abstract = {Are all startups similarly affected by the survival benefits and drawbacks of locating in geographic clusters? In this paper, we argue that prior theorizing may have missed important contingencies that affect whether a startup experiences the benefits and costs of locating in a cluster. In particular, while the local levels of skilled labor, suppliers, and purchasers have a beneficial influence and local competition has a detrimental influence on startup survival, these relationships are moderated by heterogeneity in firms' resources and capabilities. We find support for these arguments using a dataset covering the early life of all independent startups in the Canadian manufacturing sector from 1984 to 1998.},
  number = {3},
  urldate = {2017-10-31},
  journal = {Journal of Business Venturing},
  author = {Pe'er, Aviad and Keil, Thomas},
  month = may,
  year = {2013},
  keywords = {Agglomeration, Capability, Cluster, Resource, Survival},
  pages = {354--372}

Who enters, where and why? by Aviad Pe'er

  @article{peer_who_2008,
  title = {Who enters, where and why? {The} influence of capabilities and initial resource endowments on the location choices of de novo enterprises},
  volume = {6},
  issn = {1476-1270},
  shorttitle = {Who enters, where and why?},
  url = {https://doi.org/10.1177/1476127008090007},
  doi = {10.1177/1476127008090007},
  abstract = {Some geographical locations have characteristics that create opportunities for de novo enterprises, but not all new firms can access the benefits presented by a potential location. The ability of new firms to appropriate benefit and avoid risk depends on the resources that entrepreneurs can marshal for their enterprise. This article develops a model of the interplay between the attributes of de novo entrants and their founding locations. The model assumes that de novo entrants tend to appear in the region where their founders live, but that founders choose among locations within their regions.The test of the model, using data on all de novo entrants in the Canadian manufacturing sector during 1984—98, reveals that entrants with greater resource and capability endowments are more likely to locate in areas with an agglomeration of similar firms, but this effect reverses at high endowment levels. Additionally, larger entrants are less likely to locate in areas characterized by intense local competition and potential entry deterrence, while smaller and well-endowed entrants tend to locate in areas where entry barriers are lower and asset turnover higher. These findings suggest that entrants choose locations strategically within their founding regions.They also indicate that the strategic imperatives of de novo entrants differ significantly from those of geographically diversifying firms, and thus suggest amendments to theories of location choice when modeling the decisions of new ventures.},
  language = {en},
  number = {2},
  urldate = {2017-10-31},
  journal = {Strategic Organization},
  author = {Pe'er, Aviad and Vertinsky, Ilan and King, Andrew},
  month = may,
  year = {2008},
  pages = {119--149}

The New Economics Off Innovation, Spillovers And Agglomeration: A review Of Empirical Studies by Maryann P. Feldman

  @article{feldman_new_1999,
  title = {The {New} {Economics} {Of} {Innovation}, {Spillovers} {And} {Agglomeration}: {Areview} {Of} {Empirical} {Studies}},
  volume = {8},
  issn = {1043-8599},
  shorttitle = {The {New} {Economics} {Of} {Innovation}, {Spillovers} {And} {Agglomeration}},
  url = {http://dx.doi.org/10.1080/10438599900000002},
  doi = {10.1080/10438599900000002},
  abstract = {This paper reviews recent empirical studies of location and innovation. The objective is to highlight the questions addressed, approaches adopted, and further issues that remain. The review is organized around the traditions of measuring geographically mediated spillovers and productivity studies that introduce a geographic dimension. The first part identities four separate strains in the empirical spillover literature: innovation production functions; the linkages between patent citations. defined as paper trails: the rnobility of skilled labor based on the notion that knowledge spillovers are transmitted through people; and, last, knowledge spillovers embodied in traded goods. The second part considers the composition of agglomeration economies, the attributes of knowledge, and the characteristics of firms.},
  number = {1-2},
  urldate = {2017-10-28},
  journal = {Economics of Innovation and New Technology},
  author = {Feldman, Maryann P.},
  month = jan,
  year = {1999},
  keywords = {Geography, Innovation, L2, Location JEL Classification: 03, Spillovers},
  pages = {5--25}

Geography, Industrial Organization, and Agglomeration by Stuart S. Rosenthal and William C. Strange @article{rosenthal_geography_2003,

  title = {Geography, {Industrial} {Organization}, and {Agglomeration}},
  volume = {85},
  issn = {0034-6535},
  url = {https://doi.org/10.1162/003465303765299882},
  doi = {10.1162/003465303765299882},
  abstract = {This paper makes two contributions to the empirical literature on agglomeration economies. First, the paper uses a unique and rich database in conjunction with mapping software to measure the geographic extent of agglomerative externalities. Previous papers have been forced to assume that agglomeration economies are club goods that operate at a metropolitan scale. Second, the paper tests for the existence of organizational agglomeration economies of the kind studied qualitatively by Saxenian (1994). This is a potentially important source of increasing returns that previous empirical work has not considered. Results indicate that localization economies attenuate rapidly and that industrial organization affects the benefits of agglomeration.},
  number = {2},
  urldate = {2017-11-06},
  journal = {The Review of Economics and Statistics},
  author = {Rosenthal, Stuart S. and Strange, William C.},
  month = may,
  year = {2003},
  pages = {377--393}

Chapter 49 - Evidence on the Nature and Sources of Agglomeration Economies by Stuart S. Rosenthal and William C. Strange

  @incollection{rosenthal_chapter_2004,
  series = {Cities and {Geography}},
  title = {Chapter 49 - {Evidence} on the {Nature} and {Sources} of {Agglomeration} {Economies}},
  volume = {4},
  url = {http://www.sciencedirect.com/science/article/pii/S1574008004800063},
  abstract = {This paper considers the empirical literature on the nature and sources of urban increasing returns, also known as agglomeration economies. An important aspect of these externalities that has not been previously emphasized is that the effects of agglomeration extend over at least three different dimensions. These are the industrial, geographic, and temporal scope of economic agglomeration economies. In each case, the literature suggests that agglomeration economies attenuate with distance. Recently, the literature has also begun to provide evidence on the microfoundations of external economies of scale. The best known of these sources are those attributed to Marshall (1920): labor market pooling, input sharing, and knowledge spillovers. Evidence to date supports the presence of all three of these forces. In addition, there is also evidence that natural advantage, home market effects, consumption opportunities, and rent-seeking all contribute to agglomeration.},
  urldate = {2017-10-28},
  booktitle = {Handbook of {Regional} and {Urban} {Economics}},
  publisher = {Elsevier},
  author = {Rosenthal, Stuart S. and Strange, William C.},
  editor = {Henderson, J. Vernon and Thisse, Jacques-François},
  month = jan,
  year = {2004},
  note = {DOI: 10.1016/S1574-0080(04)80006-3},
  keywords = {agglomeration economies, external economies, microfoundations, productivity, urban growth},
  pages = {2119--2171}

Aspiring, nascent and fledgling entrepreneurs: an investigation of the business start-up process by Beate Rotefoss and Lars Kolvereid

  @article{rotefoss_aspiring_2005,
  title = {Aspiring, nascent and fledgling entrepreneurs: an investigation of the business start-up process},
  volume = {17},
  issn = {0898-5626},
  shorttitle = {Aspiring, nascent and fledgling entrepreneurs},
  url = {http://rsa.tandfonline.com/doi/abs/10.1080/08985620500074049}
  doi = {10.1080/08985620500074049},
  abstract = {This study focuses on three different milestones in the business gestation process, i.e. becoming an aspiring entrepreneur, a nascent entrepreneur, and a founder of a fledgling new business. Moreover, this study uses a combination of both individual and regional (or environmental) factors in predicting individuals’ success or failure to reach each of these three milestones. Hypotheses are developed to test the effect that human and environmental resources have on the odds of reaching the different milestones in the business start-up process. The study is based on interviews of a representative sample of 9533 Norwegians aged 18 years or older. From this group, 197 respondents qualified as nascent entrepreneurs. These were subsequently interviewed in follow-up interviews conducted in 1996, 1997 and 1999. In addition, regional data at the municipality level is included to measure the available pool of environmental resources. The results indicate that entrepreneurial experience is the single most important factor for predicting the outcome of the business start-up process. Even though environmental resources play a role, human resources are generally found to be better predictors of the outcome of the business start-up process. Several important implications for policy-makers are presented.},
  number = {2},
  urldate = {2017-10-28},
  journal = {Entrepreneurship \& Regional Development},
  author = {Rotefoss, Beate and Kolvereid, Lars},
  month = mar,
  year = {2005},
  pages = {109--127}

Firm Births, Access to Transit, and Agglomeration in Portland, Oregon, and Dallas by Daniel G. Chatman

  @article{chatman_firm_2016,
  title = {Firm {Births}, {Access} to {Transit}, and {Agglomeration} in {Portland}, {Oregon}, and {Dallas}, {Texas}},
  volume = {2598},
  issn = {0361-1981},
  url = {http://trrjournalonline.trb.org/doi/abs/10.3141/2598-01},
  doi = {10.3141/2598-01},
  abstract = {The formation of new firms is one process by which economies grow and innovate. Public transportation services may facilitate the birth of new firms by both providing better access and causing local densification that leads to agglomeration economies. In this study firm births are investigated to determine how they are related to newly provided light rail transit service in two metropolitan areas in the United States. A geocoded time-series database of firm establishments in Dallas, Texas, and Portland, Oregon, from 1991 through 2008 is used. The data set allows the study of spatial patterns by industry and the analysis of the relationship of firm births to rail station proximity, accessibility, and local agglomeration while controlling for a number of potentially confounding factors. Positive, large, and statistically significant relationships are found in Portland between rail station proximity and firm births. The rail proximity results in Dallas are also generally positive, though not as large; this finding is consistent with the smaller accessibility value of rail in Dallas, as well as policies encouraging commercial development near rail in Portland. Rail proximity increases firm births across almost all industrial sectors in both of these metropolitan areas when controlling for the negative effects on firm births of local own-industry employment. Local block-level agglomeration and generalized accessibility are also highly significant but appear to work independently of rail access. These results imply that passenger rail service increases firm births near rail stations by expanding access to the labor market but not by increasing information spillovers or increasing face-to-face interactions.},
  urldate = {2017-10-31},
  journal = {Transportation Research Record: Journal of the Transportation Research Board},
  author = {Chatman, Daniel G. and Noland, Robert B. and Klein, Nicholas J.},
  month = jan,
  year = {2016},
  pages = {1--10}

Path-Dependent Startup Hubs - Comparing Metropolitan Performance: High-Tech and ICT Startup Density by Dane Stangler

  @techreport{stangler_path-dependent_2013,
  address = {Rochester, NY},
  title = {Path-{Dependent} {Startup} {Hubs} - {Comparing} {Metropolitan} {Performance}: {High}-{Tech} and {ICT} {Startup} {Density}},
  shorttitle = {Path-{Dependent} {Startup} {Hubs} - {Comparing} {Metropolitan} {Performance}},
  url = {https://papers.ssrn.com/abstract=2321145},
  abstract = {Kansas City and other areas viewed as "new" startup hubs actually have been fostering a culture of entrepreneurship for some time. Many of these cities have a history of strong technology sectors or experienced strong growth among technology startups over the past two decades. A strong regional or local culture of technology entrepreneurship is not a recent phenomenon, contrary to the opinions of many. The top 10 cities in 2010 also ranked among the top 20 cities two decades earlier.This analysis shows that many cities' recent adoption of new entrepreneurship programs is more an indication of the underlying strength of the region and its base of talent on which those programs can build than it is a cause of startup activity. Cities such as Kansas City, Seattle, Portland and Boise all owe their emerging entrepreneurial ecosystems to many years of spinoffs and entrepreneurial spawning.Research universities and other postsecondary institutions are important for metropolitan entrepreneurship, but are not the sole cause in spurring such activity. Instead, the most fertile source of entrepreneurial spawning is the population of existing companies, which has implications for economic policymaking and economic development strategies.Entrepreneurs come from somewhere - this seems obvious, but that observation runs against the prevailing stereotype that entrepreneurs are, or should be, recent college grads or college dropouts. That 'somewhere' usually is a previous job in a big company or at an institution, such as a university, which helps explain the age distribution of entrepreneurs.However, regions should be careful in turning these observations into policy. While spinoffs are important for tech startup growth, such a strategy could be wrongly interpreted as supporting traditional economic development strategies of tax incentives for big companies. More work must be done to understand the local and regional dynamics of entrepreneurship, barriers that may exist to catalyzing a self-fulfilling dynamic of entrepreneurial spinoffs and what the proper role of supporting institutions should be.},
  number = {ID 2321145},
  urldate = {2017-10-24},
  institution = {Social Science Research Network},
  author = {Stangler, Dane},
  month = sep,
  year = {2013},
  keywords = {entrepreneur, local entrepreneurship, regional entrepreneurship, startup hub}