TY  - JOUR
AU  - Glaeser,Edward L.
AU  - Kerr,William R.
AU  - Ponzetto,Giacomo A.M.
TI  - Clusters of Entrepreneurship
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15377
PY  - 2009
Y2  - September 2009
UR  - http://www.nber.org/papers/w15377
L1  - http://www.nber.org/papers/w15377.pdf
N1  - Author contact info:
Edward L. Glaeser
Department of Economics
315A Littauer Center
Harvard University
Cambridge, MA 02138
Tel: 617/495-0575
Fax: 617/495-7730
E-Mail: eglaeser@harvard.edu

William R. Kerr
Harvard Business School
Rock Center 212
Soldiers Field
Boston, MA 02163
Tel: 617/496-7021
E-Mail: wkerr@hbs.edu

Giacomo Ponzetto
CREI - Universitat Pompeu Fabra
C/ Ramon Trias Fargas, 25-27
08005 Barcelona
Spain
Tel: +34 93 542 2829
Fax: +34 93 542 2826
E-Mail: gponzetto@crei.cat
M1  - published as Edward L. Glaeser, William R. Kerr, Giacomo A. M. Ponzetto. "Clusters of Entrepreneurship," in Edward Glaeser, Stuart Rosenthal and William Strange, organizers, "Cities and Entrepreneurship" Journal of Urban Economics, Vol. 67, no. 1 (2010)

AB  - Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people.
ER  -