Title: Digital innovation and urbanisation of entrepreneurial ecosystems

Authors: Petra A. Nylund; Alexander Brem; Xavier Ferrás-Hernández

Addresses: Institute of Entrepreneurship and Innovation Science, University of Stuttgart, Pfaffenwaldring 19, 70569, Stuttgart, Germany ' Institute of Entrepreneurship and Innovation Science University of Stuttgart, Pfaffenwaldring 19, 70569, Stuttgart, Germany; Department of Technology and Innovation, University of Southern Denmark, Alsion 2, 6400 Sønderborg, Denmark ' Department of Operations, Innovation and Data Sciences, ESADE, Ramon Llull University, Av. Esplugues, 92-96, 08034, Barcelona, Spain

Abstract: Digital means of creating and transferring knowledge have been thought to reduce the importance of firm location. Still, there is evidence that the urbanisation of entrepreneurship and innovation is accelerating in the digital era. We review the theory that explains how and why entrepreneurial activity moves towards city centers. Schumpeterian dynamics may affect urban entrepreneurial ecosystems more than others, and cities are thus more susceptible to external shocks. We therefore expect urban entrepreneurial activity to exhibit rapid but discontinuous growth. With data from 88 entrepreneurial ecosystems over 15 years, a panel regression analysis not only finds support for the urbanisation of entrepreneurial activity but also for how and when it happens. Urban entrepreneurial ecosystems appear to better support entrepreneurship under the current circumstances. Possible explanations and implications include the rise of digital platforms upon which business-model innovations prosper.

Keywords: entrepreneurial ecosystem; urbanisation; digitalisation; entrepreneurship; platforms; business model innovation; living labs.

DOI: 10.1504/IJEV.2022.128059

International Journal of Entrepreneurial Venturing, 2022 Vol.14 No.6, pp.664 - 680

Received: 26 Jan 2021
Accepted: 11 Feb 2022
Published online: 04 Jan 2023 *

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