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Entrepreneurial ecosystems and industry knowledge: does the winning region take all?

Author

Listed:
  • Yating Li

    (Nanjing Audit University)

  • Martin Kenney

    (University of California)

  • Donald Patton

    (University of California)

  • Abraham Song

    (Pepperdine University)

Abstract

Entrepreneurial ecosystems (EE) are composed not only of startups but also the organizations that support them. Theory has been ambivalent about whether an EE is spatially bounded or includes distant organizations. This exploratory study uses a time series of all Internet industry initial public offerings (IPO) to explore the locational changes not only of startups but also four key EE service providers: lawyers, investment bankers, venture capitalists, and board directors. We find that while the startups became only slightly more concentrated, the EE service providers concentrated more rapidly, as an industry center in Silicon Valley emerged. Our results suggest that over the industry life cycle, industry knowledge exhibits a tendency to spatially concentrate, and this results in a concentration of industry-specific EE service providers that is even greater than the more gradual concentration of startups. As a result, startups, wherever they are located, increasingly source EE services from the industrial knowledge concentration.

Suggested Citation

  • Yating Li & Martin Kenney & Donald Patton & Abraham Song, 2023. "Entrepreneurial ecosystems and industry knowledge: does the winning region take all?," Small Business Economics, Springer, vol. 61(1), pages 153-172, June.
    • Handle: RePEc:kap:sbusec:v:61:y:2023:i:1:d:10.1007_s11187-022-00681-y
    DOI: 10.1007/s11187-022-00681-y
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    1. Arnauld Bessagnet & Joan Crespo & Jerome Vicente, 2023. "How is the literature on Digital Entrepreneurial Ecosystems structured? A socio-semantic network approach," Papers in Evolutionary Economic Geography (PEEG) 2320, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2023.

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    More about this item

    Keywords

    Entrepreneurial ecosystems; Venture capital; Internet; Industry knowledge; Law firms; Silicon Valley;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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