Although much attention is accorded to star performers, this paper considers the extent to which stars, themselves, benefit from the contribution of their collaborators (the constellation). By considering stars, constellations, and the synergies between them, we address a key question: To what extent is collaboration performance driven by the great individual or by great constellations? We introduce a novel approach that uses a matching model to uncover the complementarities driving collaboration formation. We use formal value-capture theory to estimate the relative contribution of stars and constellations to joint value creation. Analyzing a sample of academic research collaborations, we document that stars’ relative contribution exceeds that of their constellations in less than 15% of collaborations, although constellations provide a greater relative contribution in 9%. In most collaborations, neither party dominates: Innovation is a collective endeavor driven equally by the star and the constellation. Joint value creation and relative contribution are explained by the subtle interplay between complementarities in joint work and the substitutability of collaborative parties in the market. Joint value creation increases with the strength of complementarities between parties in a match. Relative value creation, and hence dominance, increases with the substitutability of one’s collaborative partner. Interestingly, joint value creation is greatest in collaborations where both stars and constellations offer bundles of rare attributes and where neither the star nor the constellation dominates. This paper was accepted by Olav Sorenson, organizations. Funding: D. Mindruta gratefully acknowledges funding from the HEC Foundation and from the French National Research Agency (ANR) “Investissements d’Avenir” (LabEx Ecodec/ANR-11-LABX-0047). J. Bercovitz and M. Feldman gratefully acknowledge funding from the Science of Science Approach to Analyzing and Innovating the Biomedical Research Enterprise (SCISIPBIO) program of the U.S. National Science Foundation (NSF) [Grant 1934875]. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2021.01969 .

Private Equity (PE) investment in healthcare has grown substantially in recent years, raising alarm about its impact on patient care, healthcare professionals, and the overall integrity of the healthcare system. The influx of PE investments into healthcare has sparked debates regarding profit-driven motives, cost-cutting measures, and potential risks to patient safety and access to essential services. This article examines the extent and possible impacts of private equity in Canadian healthcare using data from a proprietary database. Drawing upon evidence from academic studies in the United States, this article provides evidence on the adverse impacts on the quality of care, the deterioration in working conditions, and degradation of the healthcare system. It provides suggestions to limit the predatory impacts of PE investment.

We estimate the effect of opioid use rates on local economic resilience through changes in industrial composition. We find regional opioid use rates adversely affect firm growth in general, with the greatest impact on small firms. Our results are robust to several identification strategies (Difference in Differences, Propensity Score Matching, and Instrumental Variables) and alternative empirical specifications. Our findings establish that local industrial composition and long-term resilience are each adversely affected by the opioid public health crisis.

Abstract This chapter reviews evidence on policy to promote the development and evolution of entrepreneurial ecosystems. We argue that policy plays a pivotal but underappreciated role in the creation and development of ecosystems. From prior studies of entrepreneurial ecosystems and clusters, we derive three roles that policy can play to create healthy entrepreneurial ecosystems: seeding actions, creating opportunities, and creating support. Public investments in individuals’ capacity create favourable conditions for the emergence of entrepreneurial ecosystems. Policy can also create new opportunities that entrepreneurs can exploit beyond just fixing existing markets. Entrepreneurial processes that consist of collective actions of entrepreneurs and diverse stakeholders in entrepreneurial ecosystems can be promoted by local entrepreneurship support infrastructure shaped by policy. The three roles imply the transition of policymakers’ perspectives from strategic planning to the strategic management of places, in line with metaphors such as those of being a curator and feeder, as suggested by the entrepreneurial ecosystem literature. Implications for each role of policy are also offered.

Small businesses within the digital sector are spread across the USA. However, a significant number of promising small businesses concentrate in major technology hubs, either initially or through relocation. This phenomenon can be attributed to the influential role played by localized markets for financing and acquisition, which is, in turn, driven by the dominant market positions held by major digital platforms. Our research demonstrates a clear pattern of localized acquisition markets, particularly in sectors frequently targeted by the seven largest American digital giants-Amazon, Alphabet (Google), Apple, Microsoft, Meta (Facebook), Oracle, and Adobe, collectively known as 'Big Tech'. This localization trend has become more pronounced between 2000 and 2020. Our analysis indicates that the gravitational pull of these acquisition markets poses challenges to local initiatives aimed at fostering digital businesses. These efforts would be more successful if measures were taken to limit the market influence of digital platforms.

Banks are one of the key drivers of economic development across communities. Banking deserts-defined by inadequate banking access-limit access to capital, inhibit wealth accumulation, and increase exposure to predatory lending. Banking desert formation could be profit-driven, with lower-income and less densely populated regions more likely to become banking deserts. Discrimination could also play a role here: banks may have less presence in areas with higher minority populations. The authors use a panel, census tract-level data set for the entire state of North Carolina to investigate how these forces impact banking access and banking desert formation. Panel methodologies are incorporated to investigate the extent to which profit and discrimination mechanisms each drive banking access and banking desert formation. Profit and discrimination mechanisms are shown to play roles, highlighting the need for policies that mitigate bank branch losses in underserved neighborhoods.

Capitalism is a powerful engine that requires finance. Private equity is part of the neoliberal transformation of capitalism that has failed the average citizen and unleashed a tsunami of leveraged acquisitions that have destroyed entire sectors of our economy. Private equity has become a powerful force that has moved from restructuring industrial firms to buying up just about any economic activity in local communities that has assets that can be monetized, without any consideration of the impact on the quality of life and well-being of the community. Th a process has been aided and abetted by government policy. The authors of this Element explain the workings of the private equity model and the reasons it has been so profitable. They document the effects of PE on firms and communities by examining a range of activities that once had a local focus. They conclude by offering policy recommendations.

We present a novel framework for studying the evolving role of entrepreneurial finance over the stages of emergence for a regional entrepreneurial ecosystem. Drawing on entrepreneurial ecosystems, entrepreneurial finance, and territorial servitization, we explore how three different finance sources impact firm survival and how they relate to each other during ecosystem emergence. We analyze entrepreneurial firms in one industry and region over 36 years. We find that firm survival is differentially affected by funder type based on the stage of ecosystem emergence. Finance sources also have different interrelations depending on the stage of emergence. Based on our results, we abductively articulate a framework for stage-dependent ecosystem emergence microfoundations. This rectifies contradictory results that examine single sources of finance and use cross-sectional data. Had we not measured the emergence process, the results would have led to markedly different theoretical implications and practical takeaways for entrepreneurial finance and ecosystem emergence. Measuring the stage of ecosystem emergence is key to success in financing start-up firms and developing entrepreneurial ecosystems. Using detailed firm-level data, we present a novel framework for studying entrepreneurial finance within a local entrepreneurial ecosystem over time. Entrepreneurial finance sources, whether public or private, interact with firms differently depending on the stage of entrepreneurial ecosystem emergence, as measured by firm density. We find that funding sources are associated with different rates of firm survival during different stages of ecosystem emergence, with a federal source more important during the nascency stage and venture capital more effective as firm density increases. Our results demonstrate that policymakers and ecosystem champions could make better decisions if finance is considered part of an emergence process.

Journal Article Realizing the promise of evolutionary economic geography: ecosystem perspectives Get access Maryann P Feldman Maryann P Feldman Arizona State University Watts College of Public Service and Community Solutions—Public Policy, 411 North Central Ave, Phoenix, Arizona 85004-2163, USA Maryann.Feldman@asu.edu Search for other works by this author on: Oxford Academic Google Scholar Cambridge Journal of Regions, Economy and Society, Volume 16, Issue 3, November 2023, Pages 587–592, https://doi.org/10.1093/cjres/rsad028 Published: 18 October 2023

Academic entrepreneurship is an important part of the U.S. entrepreneurship and innovation ecosystem, with the NSF I-Corps program playing a pivotal role. How best to evaluate the effectiveness of the I- Corps program is critical to its future success, since NSF is looking to expand the program. There is a need for alternative evaluation and assessment data that could be used to better understand the effects of regional programs, as well as how those programs might be improved. The overarching goal of this symposium is to discuss several important topics in entrepreneurship research including feedback, experimentation, pivoting, and knowledge spillovers, and to show how such research can be used to enhance assessment of the effectiveness of the I-Corps program. New Directions in the Evaluation of NSF I-Corps: The Multilevel Effects of Knowledge Spillovers Author: David A. Waldman; Arizona State U. Author: Donald Siegel; Arizona State U. Author: Salome Opoku; Arizona State U. The Antecedents and Outcomes of Entrepreneurial Pivots in the Context of I-Corp Trainees Author: Cristiano Bellavitis; Syracuse U. Whitman School of Management Author: Johan Wiklund; Syracuse U. Author: Arielle M. Newman; Syracuse U. Whitman School of Management The Bright Side of Negativity? Effective Feedback for Academic Entrepreneurs Author: Dan K. Hsu; North Dakota State U. Author: Onnolee Anne Nordstrom; North Dakota State U. Author: Dongwook Kim; North Dakota State U. Business Model Experimentation in the Context of I-Corps Teams Author: Yong Li; U. of Nevada, Las Vegas

Community banks have a unique capacity to strengthen economic resilience by alleviating local firm credit constraints during economic downturns. We provide evidence that banking access and community bank market share affected both the county-level timing and duration of the Great Recession in the United States. Using the Cox Proportional Hazards and Heckman Selection models, we find that communities with a higher community bank market share are less likely to experience recession conditions, conditional on local bank health. This suggests community banks have unique institutional structures, allowing them to continue providing funds to firms through economic downturns. This research demonstrates that local financial institutions affect economic resilience, in particular the timing and duration of recession conditions.

Inventors located in a vibrant scientific community enjoy faster access to relevant publications. The key role of the local scientific community is to provide access to global knowledge and not necessarily to feed the colocated inventors with direct inputs. We develop the logic for these effects and provide empirical tests using dyads of publication and patent data. We develop a model that links scientific knowledge, codified through publication, to industry’s inventive activity. Our analysis includes three key steps. First, we characterize the knowledge profile of local expertise for French NUTS3 jurisdictions. Second, we match scientific publications to industrial patents to consider the specific scientific knowledge useful to industrial invention. Finally, we examine the extent to which the presence of a local related scientific knowledge base provides utility for local inventions. Specifically, we consider the ability of local inventions to more rapidly avail themselves of scientific knowledge when located in a munificent location. We find that location reduces the timing to access to relevant worldwide publications by almost 1 year. Thus, colocation with scientific experts provides inventors a timing advantage by allowing earlier exploitation of recent global scientific discoveries.

This paper estimates a knowledge production function to study the effects of local spillovers on the patenting activity and new innovation sales of Chinese firms during a period marked by rapid economic reform. We show that local spillovers expected to arise between co-located firms in related industries encourages firm innovation outcomes, especially among firms that diversify their core competencies into new related (versus unrelated) technological domains. Exploiting the gradual and spatially uneven economic transitioning process as a quasi-natural experiment, we find that the positive effects of relatedness on firm innovation are significantly larger in size following more intense market-oriented reforms. The results are potentially relevant for policy-makers in transitioning economies, highlighting for the first time the importance of firms' own diversification process and market-oriented reforms for encouraging innovation-enhancing technological related spillovers.