Do local start-ups and knowledge spillovers matter for firm-level R&D investment?. (April 2022)

• Record Type: Journal Article
• Authors: Crowley, Frank; Jordan, Declan
• Is Part Of: Urban studies. Volume 59:Number 5(2022)
• Page Start: 1085
• Page End: 1102
• Publication Date: 2022-04
• Subjects: agglomeration/urbanisation -- economic processes -- entrepreneurial cities -- innovation -- technology/smart cities; 集聚/城市化 -- 经济过程 -- 创业型城市 -- 创新 -- 技术/智慧城市; Cities and towns -- Periodicals; City planning -- Periodicals; 307.1216
• DOI: 10.1177/0042098021995105
• Languages: English
• ISSNs: 0042-0980

Abstract

What happens to firm-level research and development (R&D) when urban locations have more knowledge spillovers and are more entrepreneurial? This article explores the potential tension between knowledge spillovers, start-ups and innovation effort in existing firms. The relationship is empirically tested using Swedish firm-level data and municipality-level data on start-ups. The results indicate that having more start-ups in urban municipalities is associated with lower firm-level R&D expenditure. However, this relationship is not linear, where the negative association between the level of new firm formation and firm-level R&D expenditure decreases with scale. This suggests that the relationship between local entrepreneurship and a business' R&D decisions is conditioned by the extent of that entrepreneurship.