Metropolitan Areas, Entrepreneurial Communities and the Diffusion of Venture Capital Investments: Some Descriptive Statistics
METROPOLITAN AREAS, ENTREPRENEURIAL COMMUNITIES AND THE DIFFUSION OF VENTURE CAPITAL INVESTMENTS: SOME DESCRIPTIVE STATISTICS
1. Introduction
The development of metropolitan areas is likely to depend, among other things, on the development of their entrepreneurial communities. However, our understanding of entrepreneurial communities worldwide is limited.
In the following chapter, we begin to fill this gap by providing data on the development of entrepreneurial communities around the globe. Moreover, we provide data on the diffusion of venture capital in the United States and Europe. We conclude the chapter with some recommendations for European policymakers.
2. Entrepreneurial Communities in the World
The popular press is full of stories about startups and their founders who transformed small companies into international giants (i.e., the so-called gazelles). Examples of these companies include: Google, Apple, Facebook and Twitter. What do many of these companies have in common? They were founded in Silicon Valley.
Although Silicon Valley has become the preeminent leader of entrepreneurial communities across the world, metropolitan areas such as Boston, London, Tel Aviv and New York City are also considered hotspots. They are defined as such because their communities have produced the vast majority of funded and internationally recognized startups. Nevertheless, other communities have emerged as important hubs for startups. While we do not know all the reasons why the startup movement has happened, two notable trends which we discuss in this chapter are apparent: (1) there has been a global explosion of entrepreneurship and (2) metropolitan areas and countries are trying desperately to be leaders through their startup ecosystems.
Despite our limited knowledge on the emergence of entrepreneurial communities, important factors, such as globalization, education, as well as economic and political interest have created the global
1. Introduction
The development of metropolitan areas is likely to depend, among other things, on the development of their entrepreneurial communities. However, our understanding of entrepreneurial communities worldwide is limited.
In the following chapter, we begin to fill this gap by providing data on the development of entrepreneurial communities around the globe. Moreover, we provide data on the diffusion of venture capital in the United States and Europe. We conclude the chapter with some recommendations for European policymakers.
2. Entrepreneurial Communities in the World
The popular press is full of stories about startups and their founders who transformed small companies into international giants (i.e., the so-called gazelles). Examples of these companies include: Google, Apple, Facebook and Twitter. What do many of these companies have in common? They were founded in Silicon Valley.
Although Silicon Valley has become the preeminent leader of entrepreneurial communities across the world, metropolitan areas such as Boston, London, Tel Aviv and New York City are also considered hotspots. They are defined as such because their communities have produced the vast majority of funded and internationally recognized startups. Nevertheless, other communities have emerged as important hubs for startups. While we do not know all the reasons why the startup movement has happened, two notable trends which we discuss in this chapter are apparent: (1) there has been a global explosion of entrepreneurship and (2) metropolitan areas and countries are trying desperately to be leaders through their startup ecosystems.
Despite our limited knowledge on the emergence of entrepreneurial communities, important factors, such as globalization, education, as well as economic and political interest have created the global