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Historical roots of regional entrepreneurship: the role of knowledge and creativity

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  • Alfredo Monte

    (University of Naples Federico II)

  • Luca Pennacchio

    (Parthenope University)

Abstract

This paper analyzes the historical factors that shape current levels and regional differences in new firm formation in innovative industries. Drawing on the knowledge spillover theory of entrepreneurship, we propose and test the idea that regional knowledge and creativity affect entrepreneurial activity in the long term. We investigate this in Italy using data at the NUTS-3 geographical level, which goes back as far as 1100 on some items. Our results show that the historical knowledge base, measured as the presence of public universities, is strongly related to the current level of innovative start-ups. There is also a positive relationship between past creativity, measured by the presence of scientists and inventors in the area, and current intensity of new firm formation. Lastly, these long-term effects are complementary, because provinces with both a stronger knowledge base and higher levels of creativity have more current innovative start-ups. These findings suggest that a regional entrepreneurship culture and a social environment conducive to new firm formation can explain the path-dependency of regional entrepreneurship.

Suggested Citation

  • Alfredo Monte & Luca Pennacchio, 2020. "Historical roots of regional entrepreneurship: the role of knowledge and creativity," Small Business Economics, Springer, vol. 55(1), pages 1-22, June.
    • Handle: RePEc:kap:sbusec:v:55:y:2020:i:1:d:10.1007_s11187-019-00139-8
    DOI: 10.1007/s11187-019-00139-8
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    4. José Alberto Martínez-González & Urszula Kobylinska & Desiderio Gutiérrez-Taño, 2021. "Exploring Personal and Contextual Variables of the Global Entrepreneurship Monitor through the Rasch Mathematical Model," Mathematics, MDPI, vol. 9(16), pages 1-23, August.
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    6. Arend, Richard J., 2023. "The dangers of creatively-incomplete creativity (Meta-) Theorizing," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
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    More about this item

    Keywords

    Entrepreneurship; Innovative start-ups; Regional disparities; Knowledge; Knowledge spillovers; Creativity;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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