scott's entrepreneurship as perception of economic opportunity: https://github.com/Data4DM/BayesSD/discussions/234#discussioncomment-10860037 Measuring and Managing Entrepreneurial Ecosystems β€’ Entrepreneurship and the National Systems of Innovation β€’ Measuring Entrepreneurship: From Small Firms to Young Firms β€’ The Startup Cartography Project β€’ Assessing the Impact of Institutions and Policies in Entrepreneurial Ecosystems A Simple Model of Entrepreneurial Qualityβ€’ Firm quality: π‘ž ∈ (0, ∞) observable to the entrepreneur but not the analyst β€’ Corporate Governance: The entrepreneur chooses a set of 𝑁 governance options 𝐻 = β„Ž1, … , β„Žπ‘ , β„Žπ‘– ∈ 0,1 β€’ Growth outcome: 𝑔𝑠 is a measure of performance observable (by the firm and analyst) 𝑠 years after founding, 𝑔𝑠 ∈ 0,1 β€’ Under intuitive assumptions on the relationship between q, H, and g, E(H*) is (weakly) increasing in q measuring vision + ambition + capability Estimation of Entrepreneurial QualityConsider a mapping π‘“βˆ’1 𝑔| 𝐻 β†’ πœƒ which estimates the probability of growth for a given bundle, H. Proposition #2: 𝐸 πœƒ 𝑖𝑠 π‘€π‘’π‘Žπ‘˜π‘™π‘¦ π‘–π‘›π‘π‘Ÿπ‘’π‘Žπ‘ π‘–π‘›π‘” 𝑖𝑛 π‘ž π‘“βˆ’1 𝑔| 𝐻 β†’ πœƒ identifies a monotonic function of q Two Key Insights β€’ If corporate governance choices H satisfy the SCP (i.e., a separating equilibrium for each corporate governance choice), then early corporate governance choices are signals of the underlying ΞΈ β€’ The mapping from governance choices to growth outcomes allows us to recover the probability of growth, conditional on corporate governance choices (but NOT a causal interpretation on h’s) Data Coverage Total observations: 38,506,776. 1988 to 2014: All firms registered in 49 US states (excluding Delaware) and Washington D.C. 2014 to 2016: 46 states (excluding Delaware, Illinois, Michigan, South Carolina) These states account for 99.6% of US GDP in 2014 | Startup Formation Rate (SFR) | Number of companies founded | | | -------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------- | | Entrepreneurial Quality Index (EQI) | Average estimated quality within a group of start-ups | $E Q I_{r, t}=\frac{1}{N_{r, t}} \sum_{i \in\left\{I_{r, t}\right\}} \hat{\theta}_{i, r, t}$ | | Regional Entrepreneurship Cohort Potential Index (RECPI) | The number of startups within a particular region expected to later achieve a growth outcome | $R E C P I_{r, t}=E Q I_{r, t} \times N_{r, t}$ | | Regional Entrepreneurship Acceleration Index (REAI) | Estimates the ability of an ecosystem to convert entrepreneurial potential into realized growth events. | $REAI _{r, t}=\#$ GrowthEvents $_{r, t} /$ RECPI $_{r, t}$ | What is the impact of entrepreneurial quantity and quality on subsequent economic performance and social progress? The Startup Cartography Project Built around two principles: β€’ Measurement of Entrepreneurial Quality: β€’ Using predictive analytics and business registration records β€’ Apply the β€˜Entrepreneurial Quality’ approach developed at MIT to account for the vast differences between different types of firms. β€’ User Focused Design: 1. Visualization of entrepreneurial ecosystems (at multiple geographic levels) and an ability to track entrepreneurial dynamics over time. 2. Data repository for use in a wide range of research and policy purposes. 3. Research archive to learn about entrepreneurial quality [[Economics of Ideas Entrepreneurial Ecosystems F 23.pdf]]