Regional innovation networks & high-growth entrepreneurship

Abstract

We investigate the influence of regional innovation networks (RINs) on high-growth entrepreneurship within the framework of the knowledge spillover theory of entrepreneurship (KSTE). While previous studies have separately examined RINs' role in knowledge diffusion and the geographical characteristics of high-growth firms, the connection between these two areas remains unexplored. To address this gap, we develop a conceptual model that highlights the positive impact of RINs on high-growth entrepreneurship, moderated by regional entrepreneurial capital. Using a unique longitudinal dataset at the metropolitan statistical area (MSA) level, we employ two-way fixed effects and instrumental variables regressions to analyze the data. Our findings support the conceptual model, revealing that robust RINs facilitate high-growth entrepreneurship. Additionally, we conduct post-hoc exploratory analyses to investigate potential moderating factors, including the influence of the public policy environment.