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The Impact of Sector Specialization on Entrepreneurial Activity

In: Public Policy in an Entrepreneurial Economy

Author

Listed:
  • Haifeng Qian

    (The George Mason University)

  • Huaqun Li

    (The George Mason University)

Abstract

Entrepreneurship is becoming widely recognized for its role in economic growth. The successes of Silicon Valley, Austin Texas, and Northern Virginia in the U.S. suggest that entrepreneurial activity is preferential for specific sectors (e.g. high-technology industries). This implies a sector concentration of entrepreneurship. The author explores whether sector specialization has an impact on the level of entrepreneurial activity or not in U.S. Metropolitan Statistical Areas. The econometric results show that sector specialization is a significant contributor to entrepreneurial activity, while, local factors such as population growth, income growth, unemployment rate, average establishment size and human capital all affect entrepreneurship. The paper sheds some light on the direction that future entrepreneurship policy should take.

Suggested Citation

  • Haifeng Qian & Huaqun Li, 2008. "The Impact of Sector Specialization on Entrepreneurial Activity," International Studies in Entrepreneurship, in: Zoltan J. Acs & Roger R. Stough (ed.), Public Policy in an Entrepreneurial Economy, chapter 4, pages 95-115, Springer.
    • Handle: RePEc:spr:inschp:978-0-387-72663-2_4
    DOI: 10.1007/978-0-387-72663-2_4
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    Cited by:

    1. Haifeng Qian & Zoltán J. Ács, 2015. "An absorptive capacity theory of knowledge spillover entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 9, pages 161-173, Edward Elgar Publishing.

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