Are creative metropolitan areas also entrepreneurial?

  1. Kevin Stolarick1,
  2. José Lobo2,
  3. Deborah Strumsky3

Article first published online: 15 JUN 2011

DOI: 10.1111/j.1757-7802.2011.01041.x

Issue

Regional Science Policy & Practice

Regional Science Policy & Practice

Special Issue: Innovation and creativity as the core of regional and local development policy

Volume 3, Issue 3, pages 271–286, August 2011

Additional Information

How to Cite

Stolarick, K., Lobo, J. and Strumsky, D. (2011), Are creative metropolitan areas also entrepreneurial?. Regional Sci Policy & Practice, 3: 271–286. doi: 10.1111/j.1757-7802.2011.01041.x

Author Information

  1. 1

    The Martin Prosperity Institute, Joseph L. Rotman School of Management, University of Toronto, MaRS Centre, Heritage Building, Suite 420, Toronto, Ontario, Canada M5G1L7 (e-mail: kevin.stolarick@rotman.utoronto.ca)

  2. 2

    School of Human Evolution and Social Change, and W.P. Carey School of Business, Arizona State University Tempe, Arizona 85287USA (e-mail: jose.lobo@asu.edu)

  3. 3

    Department of Geography and Earth Sciences. University of North Carolina at Charlotte, McEniry 429, 9201 University City Boulevard, Charlotte, NC 28223USA (e-mail: dstrumsky@uncc.edu)

Publication History

  1. Issue published online: 8 AUG 2011
  2. Article first published online: 15 JUN 2011
  3. Received: 1 August 2010 / Accepted: 16 May 2011

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Keywords:

  • J24;
  • L26;
  • O10;
  • O47;
  • O51;
  • R11
  • Entrepreneurship;
  • regional growth;
  • creative class;
  • regional growth components;
  • regional development policy

Abstract

Recent scholarship on metropolitan and regional development has highlighted the importance of two factors: entrepreneurship and skilled individuals. Using micro-level establishment data on the creation of new firms, and an occupational measure of skilled individuals (the creative class), we examine whether a metropolitan environment conducive to creative employment is also conducive to entrepreneurship (which can be seen as a creative act). Taking past growth into consideration, and allowing for annual fixed effects to account for economic cycles as well as controlling for systematic location-specific characteristics, we find that the larger the creative employment of a region, the higher the levels of entrepreneurship and regional growth. A region that has more new entrepreneurial firms open in the previous year is more likely to have higher growth in new entrepreneurial firms in the current year.

Resumen. Los estudios más recientes sobre el desarrollo regional y metropolitano han puesto de manifiesto la importancia de dos factores: el espíritu emprendedor y las habilidades individuales. Utilizando datos de establecimiento a microescala sobre la creación de nuevas empresas y una medida ocupacional de individuos con habilidades (clase creativa), estudiamos si un ambiente metropolitano con potencial para la creación de empleo tiene también potencial para que aparezca el espíritu empresarial (que puede verse como un acto creativo). Tomando en cuenta el crecimiento en el pasado, y considerando los efectos fijos anuales con respecto a los ciclos económicos, así como controlando las características sistemáticas específicas de la localización, descubrimos que cuanto mayor sea el empleo creativo de una región, mayores serán los niveles de espíritu empresarial y crecimiento regional. Es más probable que una región que haya creado más empresas emprendedoras nuevas en el año anterior tenga un crecimiento mayor en empresas emprendedoras nuevas en el año actual.

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