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From Chasing Smokestacks to Embracing Entrepreneurship

From Chasing Smokestacks to Embracing Entrepreneurship

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Ed Glaeser, Professor of Economics, Harvard University, explains that today's cities can succeed only if they are centers of innovation that produce new technologies and new business models. See the source url for related video.
Ed Glaeser, Professor of Economics, Harvard University, explains that today's cities can succeed only if they are centers of innovation that produce new technologies and new business models. See the source url for related video.

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Published by: The Ewing Marion Kauffman Foundation on Mar 12, 2009
Copyright:Attribution Non-commercial


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KAUFFMAN Thoughtbook
E x c E r p t f r o m
Fourth in an ongoing series, the
Kauffman Thoughtbook 2009 
captures what we arethinking, learning, and discovering about education, entrepreneurship, and advancinginnovation. This collection of more than forty essays is written by the talented KauffmanFoundation associates, partners, and experts who are pursuing the principles and visionset by our founder, Ewing Kauffman.REQUEST YOUR COMPLIMENTARY COPY AT
©2008 by the Ewing Marion Kauffman Foundation. All rights reserved.
ro Chsig Sokestcks toEbrcig Etrepreership:
Regiol Growth Throgh Ecooic Policy
eD GlaeSeR, P.D.
Frd d er Gip Prssr  ecics, hrvrd Uivrsity
a cetry go, cities cold scceed by beig low-cost prodcers o ctred goods.Good ports d ril yrds de the cities o the midwestd northest idstril powerhoses. Chgig trsporttio systes dglobliztio hve eliited tht pth to prosperity. Tody, cities c scceedoly i they re ceters o iovtio tht prodce ew techologies d ewbsiess odels. There is o wy or goverets to dte iovtio ro ohigh. Idividl etrepreers re the key prodcers o ew ides. Bt how cplces ge to be ceters o etrepreership?at the city level,  bdce o sll etrepreeril rs predicts sccess.High skill-levels re  potet predictor o popltio d icoe growth.Idstril diversity d  bdce o idepedet sppliers lso see to behelpl. These re the cts tht sggest tht cities shold pt etrepreershiphed o sokestck chsig.There re two relted tsks ivolved i cretig etrepreeril cities. irst,cities st ttrct srt, etrepreeril people. Secod, cities st possess irstrctre tht spports cretive, risk-tkig behvior. The two tsks eed ito
Excerpt ro
Kauffman Thoughtbook 2009
. ©2008 by the Ewig mrio K odtio. all rights reserved.
ech other. Srt, etrepreeril people will be ttrcted by good etrepreerilirstrctre. I those etrepreeril people coe to  re, they will help tobild the legl, socil, d physicl irstrctre they eed to sccesslly iovte.The ecooic ipertive to ttrct skilled, prospective etrepreers es thtqlity-o-lie policies becoe ecooic developet strtegies. Good schoolsboth prodce well-edcted stdets d ttrct well-edcted prets. Klzoo,michig’s strtegy o pyig or college or ll o the city’s 10,000 pblic schoolchildre is  cretive edctio strtegy tht y ttrct srt people. Srttrsporttio policies, like cogestiochrgig, c crete st cotes dhelp coect prospective etrepreers.moderte txes lso will ttrct peoplewho re plig o geertig welth.Hevy ld-se regltios restrict loclgrowth d keep hosig prices high. I  re wts to ttrct yog, prospective etrepreers, tht re eeds to kesre tht developers c bild  ew, ordble hosig stock tht will ppel totre bsiess leders. This does’t e hosig sbsidies; it es jst givigthe ree rket eogh reedo to bild eeded hoes d bsiess spce.Goveret policies shold spport rther th styie etrepreeril ctivity.Etrepreers re sesitive to bsiess txes d regltios. Right-to-work stteshve bee ch ore sccessl i ttrctig ew bsiesses over the lst tyyers th their ore pro-io copetitors hve bee. I  world where rsre extreely ootloose,  re st ke sre tht it is ot erectig policiestht std i the wy o srt people tryig ew thigs.
- ro Chsig Sokestcks to Ebrcig Etrepreership -
I  world where irsre extreely ootloose, re st ke sretht it is ot erectigpolicies tht std ithe wy o srt peopletryig ew thigs.

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