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The role of entrepreneurship, innovation, and urbanity-diversity on growth, unemployment, and income: US state-level evidence and an fsQCA elucidation / Malcolm J. Beynon; Paul Jones; David Pickernell
Journal of Business Research, Volume: 101, Pages: 675 - 687
Swansea University Author: Paul, Jones
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The purpose of this study is to consider the differing roles played by combinations of dimensions of entrepreneurship, innovation and geography (here - urbanity-diversity) on United States (US) state level growth, unemployment and income. Fuzzy-set Qualitative Comparative Analysis (fsQCA) forms the...
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The purpose of this study is to consider the differing roles played by combinations of dimensions of entrepreneurship, innovation and geography (here - urbanity-diversity) on United States (US) state level growth, unemployment and income. Fuzzy-set Qualitative Comparative Analysis (fsQCA) forms the primary methodology to investigate these potential roles. One important developmental feature of the analysis is the use of a novel fuzzy membership score creation process, undertaken to calibrate the considered condition and outcome variables. Moreover, fuzzy cluster analyses are undertaken, using the fuzzy c-means technique, on sets of constituent variables to produce sets of clusters interpretable to the relevant condition and outcome variables. A series of fsQCA investigations are undertaken across the different outcome variables of growth, unemployment and income. The main results of the study are that high growth entrepreneurship and innovation are key to economic growth but may require additional (though differing) supporting entrepreneurial activities and processes depending on the economic geography of the State. With regards to unemployment, it is Main Street Entrepreneurship that was consistently present for absence of unemployment causal-recipes and its absence in four of the five high unemployment causal-recipes, the absence of Urbanity-diversity was consistently shown in absence of unemployment causal-recipes and its present in three of the five high unemployment complex causal-recipes. For income, the presence of Innovation in all the high income causal-recipes and its absence in three of the four absence of income causal-recipes, Urbanity-diversity present in two of the three high income causal-recipes, and absent in three of the four absence of income causal-recipes. Overall, the results of the study suggest that for non urban-diverse states, the presence of Innovation, Growth Entrepreneurship and Main Street, and relative absence of start-up activity is of relevance in supporting positive growth, unemployment and income outcomes. For more urban-diverse states however, this combination of factors is less effective in generating positive outcomes across all three variables, suggesting trade-offs needing to be considered in these more complex economies. This study contributes to the theory of entrepreneurship and innovation by offering new insights into how different combinations of entrepreneurship, innovation and the urbanity-diversity affect growth, unemployment and income levels across different US states, consequently informing entreprenurship policy practice in terms of which policies work most effectively in which conditions. The novel applied and technical developments demonstrated in the study offer novel implementations on this area of research.
USA, state Level, fsQCa, innovation
School of Management