Agglomeration, Clusters and Entrepreneurship

Agglomeration, Clusters and Entrepreneurship

Studies in Regional Economic Development

New Horizons in Regional Science series

Edited by Charlie Karlsson, Börje Johansson and Roger R. Stough

Regional economic development has experienced considerable dynamism over recent years. Perhaps the most notable cases were the rise of China and India to emergent country status by the turn of the millennium. With time now for hindsight, this book identifies some of the key forces behind these development successes, namely agglomeration, clusters and entrepreneurship.

Chapter 8: Rapid-growth firms: exploring the role and location of entrepreneurial ventures

Jarle Bastesen and Eirik Vatne

Subjects: business and management, entrepreneurship, economics and finance, economics of innovation, regional economics, innovation and technology, economics of innovation, urban and regional studies, clusters, regional economics

Extract

In the struggle for long-run economic performance, governments try to find incentives and make priorities to enhance effectiveness, innovation and job creation (OECD, 2002; 2006a). Entrepreneurs, especially high-growth firms, are recognized as central actors in fostering employment opportunities, growth and innovation (Birch, 1987; Europe-Innova, 2006; OECD, 2002). Despite their importance in the economy, we have little systematic knowledge about them (Hvide, 2005). Organizational growth is not well understood, partly because of the heterogeneity of growth patterns at the firm level. Different theoretical contributions discuss whether organizational patterns of growth depend on the size of the firm, its age or industry; on the type of governance and its relationship to other economic agents; on its market potential in niche markets and locations; or on the ambitions of the entrepreneurs. We know that the study of growth is dependent on the measure used to identify firm growth, and that high-speed growth is not a sustainable position for most firms but an episode that usually happens once or twice in the lifespan of a firm. A special interest is ascribed to the study of rapid-growth firms. These firms have gained special attention because they must have done something better or different than others. Rapid growth is seen as an indicator of the firm's overall success (Fischer and Reuber, 2003). Normally these firms are young, rapidly expanding small and medium-sized enterprises (SMEs) and central drivers in generating new jobs and wealth.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information