Knowledge Spillovers, Entrepreneurial Ecosystems and the Geography of High Growth Firms

Abstract

Knowledge created outside the firm, but within the same region, is a key enabler of high-growth firms. This paper develops an entrepreneurial ecosystems conceptual framework focussing on knowledge spillovers and regional absorptive capacity, to account for interregional differences in high-growth firm rates. This is tested using panel data from 378 regions in Great Britain. Knowledge creation (SME-engaging and research-intensive universities, innovative firms) and knowledge spillovers (primarily through vertically related industries) reveal to be of key importance. Other key regional enablers of high growth firms pertain to entrepreneurship culture, talent, intermediate services, networks, finance and demand growth.