Entrepreneurship in Cities

Impactful, growth-oriented entrepreneurship is a major research and policy focus. Building on arguments put forward by Jane Jacobs more than 50 years ago, we propose that local knowledge spillovers in city are enhanced human agency (e.g. psychological openness). This effect critically amplified the catalyst function of favorable structural environment not only connects these agentic people (via urban density), but also facilitates production flow new for connected diverse industry mix). three-way interaction was confirmed our empirical investigation quality across MSAs (cities) US, using large-scale dataset profiles millions people. Local openness shows robust positive level entrepreneurship. further strengthened (i.e. high density diversity) up to 35%. Reviving Jacobs’ focus, results indicate best performing cities terms economic performance those home to, attract, people, empower means physical industrial landscape enables them act innovative entrepreneurial ways, as envisioned Jacobs. We discuss implications findings an agenda future research.