Creating an Environment for Economic Growth: Creativity,Entrepreneurship or Human Capital?

Scholars and policymakers interested in the growth and prosperity of regions have long recognized that talent and knowledge are fundamental. Yet the question is what types of talent are needed in a growing twenty‐first‐century economy: human capital, creativity and innovation, or entrepreneurship? The latter we define broadly to include any type of risk taking, and not only radical innovation. The literature does not clearly point to one factor as being the most essential. This study assesses this question separately for rural and urban United States (US) counties. We find that human capital––measured by educational attainment––is considerably more conducive to employment growth than the share of creative occupations. Likewise, the share of small and medium businesses is also very conducive to local growth, although this does not apply to the self‐employment share. Rural and urban areas experience similar patterns, although the magnitude thereof tends to be larger for urban counties, whereas high‐technology employment share has had a positive effect in rural areas. Policy conclusions suggest that enhancing small business development and increasing educational attainment are the two strategies that are most likely to succeed.     

Knowledge,Competence, And Regional Development

This study examines the impact that locational spillovers have on firm performance. On the basis of a uniquely created data set consisting of high-technology start-ups publicly listed in Germany, this paper tests the proposition of locational spillovers positively affecting firm performance, as measured by abnormally high profits on the stock market. The results provide evidence that geographic proximity and university spillovers are complementary determinants of firm performance. Although neither geographic proximity nor academic research spillovers alone can explain firm performance, a combination of both factors results in significant higher stock market performance. The results also show that academic spillovers are heterogeneous in their impact, depending on the type. In particular, spillovers from social sciences have a different impact on firm performance than do spillovers from natural sciences.     

Fibre tracks: explaining investment in fibre optic backbones

This paper examines the US portion of the global communications network known as the Internet. The stages in the Internet's evolution, telecommunications deregulation, and a rush by new competitors to new market opportunities associated with the Internet combined to prompt a flurry of investment in new fibre-optic networks. Frameworks to explain new networks built upon, and added to, existing telecommunications networks include network economies and the opportunity-rich paths located between the large markets on the east and west coasts of the country and a capital-driven set of new and old network suppliers. The paper then reviews the small but growing body of research on the geographic structure of the Internet. The empirical section of the paper focuses on analyses of the variation among urban areas both in bandwidth on interurban Internet backbone networks and in the number of web design firms in the USA. Bandwidth investment was attracted not only to cities with larger populations but also to cities with ‘knowledge economies’, indicated by doctoral degree-granting institutions and economic dynamism. The paper concludes with remarks about future research priorities.     

Information source usage in the migration decision

This paper examines the characteristics of information source usage in the migration decision. Its first task is to put forth a conceptual frame-work. This draws upon a framework developed earlier by one of the authors, but extends it to include phases of the migration decision-awareness, interest, and evaluation-under the hypothesis that the intensity of information source usage and the type of information gathered varies by phase. The second task involves reporting the results of a survey based upon a questionnaire that incorporated the conceptual framework. This instrument was administered to 274 migrants to Columbus, Ohio. In reporting the empirical findings of the survey, three questions are addressed: (1) What is the pattern, frequency and effectiveness of information source usage by migrants? (2) What type of information is obtained from each information source? (3) Does information source usage and/or type of information obtained vary by phases of the migration decision process?     

Book review of Economic Geography of Higher Education: Knowledge Infrastructure and Learning Regions. Edited by ROEL RUTTEN,FRANS BOEKEMA and ELSA KUIJPERS (London: Routledge, 2003). [Pp. 258]

This paper focuses on the growing aspect of entrepreneurship associated with lifestyle-induced migration from wealthy countries, through investigating self-employment among expatriates from northern Europe in rural areas of southern France and Spain. Most expatriates had no prior experience of entrepreneurship and typically established their business opportunistically and some time after arrival. Based upon interviews with 41 expatriate households (operating 70 business ventures), the study explores the characteristics of the individuals involved, the nature of their businesses, factors influencing start-up, and processes and patterns of business development. Self-employment is shown to be the most effective available mechanism for supporting lifestyle objectives of expatriates who vary greatly in their skills, experience and resources. The study identifies significant differences between the respective groups from the two countries, reflecting the spatially differentiated character of migration in terms of age, education, qualifications and capital resources. These appear to have given rise to a more sophisticated profile of businesses in the French areas. Sharp differences in language skills as between the different countries are seen as influencing the ability of entrepreneurs to network with, and market to, the indigenous population, with implications for the future development of the businesses, and their local impact. The study seeks to augment standard conceptual approaches to entrepreneurship, through taking account of the primacy of the migration decision and specific related processes, and proposes a model that advances our understanding of the phenomenon.     

Product cycles,innovation cycles,and regional economic change

The effects of technological change below the level of national and sectoral aggregations are frequently overlooked. This paper reviews the regional economic changes that result from technological change at both the firm level and in the individual plant. The related concepts of product cycles and innovation cycles provide a perspective for assessing regional and local effects. Government policies related to innovation are examined in the light of regional economic implications.