Entrepreneurship and innovation in second tier regions by Heike Mayer

By Heike Mayer

Moment tier high-tech areas are taking a special direction than their famous opposite numbers corresponding to Silicon Valley or course 128 round Boston. they could lack many must haves of development reminiscent of a world-class learn college or excessive degrees a bet capital investment. usually, despite the fact that, they could effectively leverage anchor agencies and entrepreneurial spinoffs. This ebook explores the evolution of those areas within the United States.
The writer significantly examines how they developed as knowledge-based economies, how they leveraged entrepreneurship and innovation, and eventually how they hired public coverage to help monetary growth.
Filling a niche within the literature, the e-book speaks to researchers and coverage makers around the fields of entrepreneurship, fiscal geography and financial improvement making plans. Entrepreneurship researchers will locate this ebook fascinating since it specializes in the function of recent enterprise construction in neighborhood fiscal improvement.

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Similar to the growth phase, firm building plays an important role in maturation and specialization. Certain types of corporations – particularly those that are leaders in their markets – can function as ‘extrovert firms’ (Tappi, 2005: 293) that funnel new knowledge and innovations to the region through their non-local networks and linkages to the global economy. indd 31 21/11/2011 10:45 32 Entrepreneurship and innovation in second tier regions from the presence of extrovert firms, because they can implant resources and thereby stimulate cluster growth, maturation, and specialization.

In the late 1950s and early 1960s advanced high-tech manufacturing facilities for IBM, Martin Marietta, and Ball Brothers Aerospace initiated successful economic development, albeit with limited local inter-firm linkages. Studies of this region indicate that access to universities or government research laboratories was not important in the location decisions of those firms (Lyons, 1995). The Denver/Boulder high-tech economy grew primarily because of entrepreneurship. , 2004). About 32 per cent of the firms examined for one study (Lyons, 1995) were founded by entrepreneurs who used to work for other local firms.

Common to the studies is the role of large, dominant, innovative, and often market-leading firms. These firms shape the regional environment through spin-offs (by functioning as incubators and becoming parents of new ventures); they attract and develop labour; they exert political power and shape the region’s business environment; they provide business opportunities for other firms; they can implant their resources in a region; and – through market relationships – they link to other regions. In all these activities, the organizational structure, and the corporate strategies of these firms play a significant role, and we need to pay attention to these firm-specific aspects.

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