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The communal roots of entrepreneurial-technological growth - social fragmentation and stagnation: reflection on Atlanta's technology cluster

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  • Dan Breznitz
  • Mollie Taylor

Abstract

Why do some entrepreneurial high-technology industrial clusters grow and prosper, while others stagnate? Even after several decades of research, we have yet to find a definitive answer. One of the main debates in the literature revolves around the importance of societal variables, such as the growth of a cohesive community, versus the importance of factor availability, such as the supply of highly educated labour. Employing a critical case study design to analyse the technology industry in metropolitan Atlanta, this article shows that although the availability of certain factors might be necessary, it is not sufficient without the crystallization of a cohesive social structure. More specifically, we argue that unless a local high-technology industry develops rich multiple, locally centred social networks, which embed companies in the region, cluster development will stagnate. This is true even if the region is extremely rich in all the factors identified as growth-inducing in the literature.

Suggested Citation

  • Dan Breznitz & Mollie Taylor, 2014. "The communal roots of entrepreneurial-technological growth - social fragmentation and stagnation: reflection on Atlanta's technology cluster," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(3-4), pages 375-396, May.
    • Handle: RePEc:taf:entreg:v:26:y:2014:i:3-4:p:375-396
    DOI: 10.1080/08985626.2014.918183
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    1. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
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    Cited by:

    1. Philip T. Roundy, 2017. "Hybrid organizations and the logics of entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1221-1237, December.
    2. Yasuyuki Motoyama & Susan Clark Muntean & Karren Knowlton & Banu Ozkazanc-Pan, 2021. "Causes of the gender divide within entrepreneurship ecosystems," Local Economy, London South Bank University, vol. 36(3), pages 187-204, May.
    3. Vrontis, Demetris & Morea, Donato & Basile, Gianpaolo & Bonacci, Isabella & Mazzitelli, Andrea, 2021. "Consequences of technology and social innovation on traditional business model," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    4. Paige Clayton & Maryann Feldman & Benjamin Montmartin, 2024. "Entrepreneurial finance and regional ecosystem emergence," Small Business Economics, Springer, vol. 62(4), pages 1493-1521, April.
    5. Shiri M. Breznitz & Paige A. Clayton & Daniela Defazio & Kimberley R. Isett, 2018. "Have you been served? The impact of university entrepreneurial support on start-ups’ network formation," The Journal of Technology Transfer, Springer, vol. 43(2), pages 343-367, April.
    6. Roundy, Philip T. & Brockman, Beverly K. & Bradshaw, Mike, 2017. "The resilience of entrepreneurial ecosystems," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 99-104.
    7. Carolin Ioramashvili & Maryann Feldman & Frederick Guy & Simona Iammarino, 2024. "Gathering round Big Tech: How the market for acquisitions concentrates the digital sector," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(2), pages 293-306.
    8. Philip T. Roundy, 2016. "Start-up Community Narratives: The Discursive Construction of Entrepreneurial Ecosystems," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(2), pages 232-248, September.
    9. Daniel Cukier & Fabio Kon, 2018. "A maturity model for software startup ecosystems," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-32, December.

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