The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S

Cebula, Richard J.; Davis, Malissa; Koch, James V.; Saunoris, James W.

doi:10.1080/00036846.2020.1737314

“…Like prior findings (e.g., Cebula et al 2020;Nideomsyl and Hansen 2010), climate amenities exert only weak influence on relocation decisions for this kind of sample.…”

Section: Discussionsupporting

confidence: 71%

“…When studying the growth of cities, the migratory trends of people moving to warmer, drier locations suggests an increasing importance being placed on consumptive amenities compared to other factors affecting production (Glaeser and Shapiro 2003). Others also find migration flowing toward warm weather (e.g., Scott 2010;Cebula et al 2020).…”

Section: Entrepreneurial Locationmentioning

confidence: 99%

Looking for a change in scene: analyzing the mobility of crowdfunding entrepreneurs

Noonan

¹

,

Breznitz

²

,

Maqbool

³

2020

Small Bus Econ

2

0

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As the platform economy expands, little is known about entrepreneurial mobility for those creating new ventures using online platforms. Few studies have focused on entrepreneurs' decisions to relocate. Entrepreneurs using crowdfunding platforms, especially those in the arts and creative industries, present an interesting opportunity to investigate factors influencing relocation decisions. Our analysis sheds light on why crowdfunding creators relocate their projects, the factors that explain their destination choice, and how those factors differ by the type of crowdfunding venture. To understand entrepreneurs' relocation decisions, we build a pseudopanel dataset to track creator relocations on the largest reward-based crowdfunding platform (Kickstarter). The final dataset consists of over 25,000 instances where entrepreneurs within the United States made relocation decisions. Taken together, the Kickstarter data on thousands of creators over time, some of whom opted to move, reveals interesting patterns about who moved and where they went. We model their relocation decisions in two stages. First, we analyzed the decision to stay or relocate. Then, for those who relocate, we estimate a destination choice model that identifies the factors that influence which destination regions are selected. Even though these entrepreneurs utilize a platform-based tool for fundraising, they are strongly tied to their local geography. The results confirm that decisions to "change scenery" follow regional conditions relevant to local market size and their networks. The particular factors attracting these entrepreneurs depend on the sort of creative activity (e.g., music, film), as these creators exhibit tendencies to cluster in metros with well-developed crowdfunding communities.

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“…Clearly, analyzing relocation patterns at the aggregated, metro-level does not directly reveal motivations for or mechanisms shaping individual relocations, even though the hypotheses derive from microfoundations. Akin to the linear modeling of Neal (2012) and Cebula et al (2020), our basic empirical model also explains migration to a region based on its demographics, regional economy, and amenities. Our initial model then takes the form:…”

Section: Model and Estimation Methodsmentioning

confidence: 99%

Flocking to the crowd: Cultural entrepreneur mobility guided by homophily, market size, or amenities?

Noonan

¹

,

Breznitz

²

,

Maqbool

³

2021

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Economic activity and innovation clusters in urban areas. Urban economics points to important knowledge and productivity spillovers in cities, in addition to other factors like thicker markets, lower transportation costs, and consumptive amenities. Yet thus far little work has analyzed how these different factors drive migration decisions of arts-related entrepreneurs, especially when they work in online platforms for fundraising. We use data on the largest US crowdfunding platform to identify relocating creators, allowing us to identify which kinds of regions are attracting and retaining more of this sort of talent. We test for the influence of clustering based on homophily, migration to larger markets, and relocation toward particular geographic amenities. Overall we find the strongest evidence for homophily and some distinct tendencies favoring certain regional amenities. Importantly, we both identify general relocation patterns among crowdfunding creatives and break down the attracting features for different types of creators. An examination of (net) migration by different categories of projects, such as musicians or filmmakers, reveals important heterogeneity in the attractors. For example, musicians are drawn stronger music sectors while writers seek more isolation from other writers. This helps inform the interregional competition for talent and "creative class," especially among a group of relatively footloose arts-and culture-intensive entrepreneurs.2 economies, then rather little is known about the factors that attract or retain this creative talent. Attracting cultural entrepreneurs, especially in a digital age, may not follow traditional clustering patterns.Human capital is one of the most important factors in today's knowledge economy and is an essential part of any industrial cluster (Porter 1990). Hundreds of scholars around the world emphasize the importance of co-location of related industries (Piore and Sable 1984, Porter 1990). Initially, clusters were based on the location of their basic resources, mostly natural resources such as energy and access to transport. Over time, as the industrial process became flexible, transportation costs went down, and markets became increasingly important, industrial clusters specialized in parts of the production chain such as research, design, development, and manufacturing. Today, in the global economy, most advanced companies focus on R&D rather than manufacturing their own product. Subsequently, the ability of highly skilled human capital to transfer knowledge, by leveraging their social capital, became the most important resource that determines the ability of industries and regional development (Granovetter 1973, Putnam 1995. As cities compete for resources, the most sought-after resource became human capital.According to Moretti (2012), the polarized US has some cities attracting more high-skilled workers than others, leading to winning and losing cities. On one side, "brain hub" cities include those with the largest share of workers with college degree...

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Flocking to the Crowd: Cultural Entrepreneur Mobility Guided by Homophily, Market Size, or Amenities?

Noonan

¹

,

Breznitz

²

,

Maqbool

³

2022

Arts, Entrepreneurship, and Innovation

2

0

View full text Add to dashboard Cite

Economic activity and innovation clusters in urban areas. Urban economics points to important knowledge and productivity spillovers in cities, in addition to other factors like thicker markets, lower transportation costs, and consumptive amenities. Yet thus far little work has analyzed how these different factors drive migration decisions of arts-related entrepreneurs, especially when they work in online platforms for fundraising. We use data on the largest US crowdfunding platform to identify relocating creators, allowing us to identify which kinds of regions are attracting and retaining more of this sort of talent. We test for the influence of clustering based on homophily, migration to larger markets, and relocation toward particular geographic amenities. Overall we find the strongest evidence for homophily and some distinct tendencies favoring certain regional amenities. Importantly, we both identify general relocation patterns among crowdfunding creatives and break down the attracting features for different types of creators. An examination of (net) migration by different categories of projects, such as musicians or filmmakers, reveals important heterogeneity in the attractors. For example, musicians are drawn stronger music sectors while writers seek more isolation from other writers. This helps inform the interregional competition for talent and "creative class," especially among a group of relatively footloose arts-and culture-intensive entrepreneurs.2 economies, then rather little is known about the factors that attract or retain this creative talent. Attracting cultural entrepreneurs, especially in a digital age, may not follow traditional clustering patterns.Human capital is one of the most important factors in today's knowledge economy and is an essential part of any industrial cluster (Porter 1990). Hundreds of scholars around the world emphasize the importance of co-location of related industries (Piore and Sable 1984, Porter 1990). Initially, clusters were based on the location of their basic resources, mostly natural resources such as energy and access to transport. Over time, as the industrial process became flexible, transportation costs went down, and markets became increasingly important, industrial clusters specialized in parts of the production chain such as research, design, development, and manufacturing. Today, in the global economy, most advanced companies focus on R&D rather than manufacturing their own product. Subsequently, the ability of highly skilled human capital to transfer knowledge, by leveraging their social capital, became the most important resource that determines the ability of industries and regional development (Granovetter 1973, Putnam 1995. As cities compete for resources, the most sought-after resource became human capital.According to Moretti (2012), the polarized US has some cities attracting more high-skilled workers than others, leading to winning and losing cities. On one side, "brain hub" cities include those with the largest share of workers with college degree...

show abstract

The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S

Cited by 7 publications

References 47 publications

Looking for a change in scene: analyzing the mobility of crowdfunding entrepreneurs

Looking for a change in scene: analyzing the mobility of crowdfunding entrepreneurs

Flocking to the crowd: Cultural entrepreneur mobility guided by homophily, market size, or amenities?

Flocking to the Crowd: Cultural Entrepreneur Mobility Guided by Homophily, Market Size, or Amenities?

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