Are the problem spaces of economic actors increasingly virtual? What geo-located web activity might tell us about economic dynamism

Abstract

The principal questions this research will address are: 1) whether a higher propensity to visit websites of interest to actual or nascent entrepreneurs is associated with higher rates of new firms births in an area; 2) whether a higher propensity to visit websites of interest to those working on design problems is associated with the quality of business in terms of orientations toward design or innovation; and 3) whether a higher propensity to visit websites of interest to those pursuing arts as an avocation is associated with an increased ability to find nonobvious solutions that might be manifest in business quality. The unique data that allow examining these questions were compiled from billions of web hits by geo-located devices. These data are combined with both detailed establishment level data with reliable information on the innovation and design orientation of firms, and a longitudinal census of all establishments with a formal credit relationship in the U.S. The findings confirm that businesses located in areas with a high propensity to visit design and arts avocation websites are more likely to pursue more far ranging innovation and are more likely to integrate design into their innovation processes. Firm birth rates are higher in areas with a high propensity to visit websites of interest to entrepreneurs, and the existence of high growth firms is strongly associated with demonstrated interest in design and arts avocation websites. The possible uses of these nontraditional measures as indicators of economic dynamism are discussed.

Nowcasting Entrepreneurship: Urban Third Place versus the Creative Class

“…Thus, the final included data for all the potential third places are 20 These web user-generated data with geographical location have several advantages. They are up to date, and reflect users' interests [48]-thus more accurately identify who is and who is not the creative class based on their lifestyle. The measurement of users' interest in urban third places also helps to tease out irrelevant and unpopular third places.…”

The firm geography of Central and Eastern Europe and the Western Balkans

“…Research of Wojan & Slaper (2020) [13] was aimed at investigating geo-located web activity as a potential indicator of economic dynamism, providing new insights into the determinants of faster firm formation and higher firm innovation rates. The plausible "but for" percentages for economic development incentives were examined, shedding light on the positive local employment effects resulting from a positive location decision by a firm [14].…”