Entrepreneurial innovativeness: When too little or too much agglomeration hurts

Pindado, Emilio and Sánchez, Mercedes and García Martínez, Marian (2023). Entrepreneurial innovativeness: When too little or too much agglomeration hurts. "Research Policy", v. 52 (n. 1); ISSN 0048-7333. https://doi.org/10.1016/j.respol.2022.104625.

Description

Title: Entrepreneurial innovativeness: When too little or too much agglomeration hurts
Author/s:
  • Pindado, Emilio
  • Sánchez, Mercedes
  • García Martínez, Marian
Item Type: Article
Título de Revista/Publicación: Research Policy
Date: January 2023
ISSN: 0048-7333
Volume: 52
Subjects:
Freetext Keywords: Entrepreneurship, innovation, urban agglomeration, proximity paradox, firm heterogeneity, multi-level analysis.
Faculty: E.T.S. de Ingeniería Agronómica, Alimentaria y de Biosistemas (UPM)
Department: Economía Agraria, Estadística y Gestión de Empresas
UPM's Research Group: Innovación y Gestión Empresarial
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

This study sheds light on the relationship between agglomeration, entrepreneurs' internal resources and capabilities, and new ventures' innovativeness using a multilevel framework. We argue that the urban agglomeration of economic agents within a country has an inverted U-shaped relationship with new ventures' innovativeness, suggesting that both insufficient and excessive agglomeration might be detrimental to entrepreneurial innovativeness. Additionally, we perform interactions between individual level factors and urban agglomeration to examine the differential effects of entrepreneurs' internal resources and capabilities. Results confirm our hypothesising that the geographical concentration of economic agents within a country exerts an inverted U-shaped influence on new ventures' innovativeness. Furthermore, we find that entrepreneurs with higher levels of education or prior entrepreneurial experience are better equipped to benefit from agglomeration and to mitigate its negative effects; in contrast, at low levels of agglomeration, entrepreneurs with lower resources exhibit increasing marginal returns. Entrepreneurs in contact with other entrepreneurs are better positioned to deal with agglomeration externalities although their benefits and drawbacks are intensified. Our research contributes to the understanding of agglomeration externalities and entrepreneurial innovativeness, its non-linear dynamics and differential effects.

Funding Projects

TypeCodeAcronymLeaderTitle
Government of SpainRTI2018-093791-B-C21STRINNMercedes SánchezFortalecimiento del sistema de innovación agroalimentaria a lo largo de la cadena de valor

More information

Item ID: 72110
DC Identifier: https://oa.upm.es/72110/
OAI Identifier: oai:oa.upm.es:72110
DOI: 10.1016/j.respol.2022.104625
Official URL: https://www.sciencedirect.com/science/article/pii/S0048733322001469
Deposited by: Dr. Emilio Pindado
Deposited on: 24 Nov 2022 07:25
Last Modified: 24 Nov 2022 07:31
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