![Page 1: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/1.jpg)
Understanding Place-Based Economic Performance
David B. Audretsch
![Page 2: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/2.jpg)
Unemployment Rates for Metropolitan Areas
0
5
10
15
20
25
2016
Local Area Unemployment Statistics
![Page 3: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/3.jpg)
America’s Richest and Poorest Cities
Richest Poorest
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Median household income
![Page 4: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/4.jpg)
What Influences Place-Based Economic Performance?
“Combine liberal amounts of technology, entrepreneurs, capital, and sunshine. Add one (1) University. Stir vigorously.”
Gordon Moore, Founder, Intel
![Page 5: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/5.jpg)
Factors & Resources
• Physical Capital • Natural Resources • Unskilled Labor• Skilled Labor • Human Capital • Creative Class • Knowledge
![Page 6: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/6.jpg)
Spatial Structure & Organization
• Clusters • Specialization • Diversification • Market Power • Competition • Entrepreneurship
![Page 7: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/7.jpg)
Culture
--Saxenien, Regional Advantage, (Harvard University Press, 1994)
-- Acemoglu & Robinson, Why Nations Fail: The Origins of Power, Prosperity (Profile Books, 2012)
![Page 8: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/8.jpg)
Human Dimension (Behavior)• Networks, linkages & interactions – social capital
(AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994)
• Leadership (Al Link, A Generosity of Spirit, Duke University Press, 1995)
• Identity & Image (Albert O. Hirschman, Exit, Voice and Loyalty, Harvard University Press, 1970)
![Page 9: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/9.jpg)
Can Policy Make a Difference? Is Entrepreneurial Culture Endogenous or Exogenous?• “Macropsychological Factors Predict Regional Economic
Resilience During a Major Economic Crisis” --Martin Obschonka, Michael Stuetzer, David B. Audretsch, Peter J. Rentfrow, Jeff Potter & Samuel D. Gosling, Social Psychological and Personality Science
![Page 10: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/10.jpg)
Data – Measuring Entrepreneurial Culture
• Individual Personality Traits • Gosling-Potter-Internet-Project Measuring Personality
Characteristics in the U.S., 2003-2009 (N = 935,858)
![Page 11: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/11.jpg)
Measuring Entrepreneurship Culture
11
Factor Weakexpression
Strong expression
Correlation with entrepreneurship
Openness conservative, cautious
Inventive, curious
0.36
Conscientiousness Easy going, careless
Efficient, organised
0.45
Extraversion Solitary, reserved
Outgoing, energetic
0.22
Agreeableness Challenging, detached
Compasionate, friendly
- 0.16
Neuroticism Secure, confident
Sensitive, nervous
- 0.37
![Page 12: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/12.jpg)
Entrapreneurial Personality Profile
12
![Page 13: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/13.jpg)
Entrepreneurial Culture of Cities
13
Startup Rates
![Page 14: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/14.jpg)
Impact of Cultural Context on Human Capital & Entrepreneurship
![Page 15: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/15.jpg)
Impact of Cultural Context on Industry Diversity & Entrepreneurship
![Page 16: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/16.jpg)
Natural Resources
Physical Capital Infrastructure Human Capital Creative Class Skilled Labor
Unskilled Labor
Spatial and Organizational Structure
Competition Specialization
Diversity Market Power
Entrepreneurship Clusters
Behavior (Human Dimension)
Identity and Image Networks and Linkages
Leadership Social Capital
Learning
Policy Not the same for every place
Can have negative effects The underlying factors are interrelated
Economic Performance
Measured by quantifiable units:
GDP per capita Unemployment Rate
Etc.
Underlying Forces
The Strategic Management of Places (SMP) Framework
![Page 17: Understanding Place-Based Economic Performance · •Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994) •Leadership](https://reader030.vdocument.in/reader030/viewer/2022040410/5ecb359c4f95a253675a48d9/html5/thumbnails/17.jpg)
Conclusions
• Place-Based Economic Performance Shaped by Resources & Factors, Spatial Structure & Organization, Human Dimension (Behavior)
• Can Policy Make A Difference?
• Answer may not be “yes” or “no” but rather depend upon (cultural) context