Entrepreneurship & The Strategic Management of Place David Audretsch

What in the Strategic Management of Place?

“Combine liberal amounts of

technology, entrepreneurs, capital, and

sunshine. Add one (1) University. Stir

vigorously.”

Gordon Moore, Founder, Intel

And Why Does It Matter?......

“What’s Good for General Motors…..”

Squatters Take on the Creative Class: Who Has the Right to Shape the City? Hamburg has been trying to woo the

much-coveted "creative class" for years in a bid to secure its future. Now the city has become the front line in a bitter conflict over gentrification, with artists squatting buildings in protest against investment plans and members of the far-left scene attacking private property -- and even police.

In his theory, Florida argues that cities must reinvent themselves. In contrast to the 1990s, they should no longer attempt to attract companies, but people. More specifically, the right people -- people who invent things, who promote change and who shape a city's image. He has classified these people as the "creative class." It's a theory that has had unintentional consequences -- including bitter conflicts in places like Hamburg.

The Demise of the Singular Strategy Obsession

Factors & Resources

• Physical Capital (Robert Solow)

• Natural Resources (David Riccardo)

• Unskilled Labor

• Skilled Labor

• Human Capital (Gary Becker)

• Creative Class (Richard Florida)

• Knowledge (Paul Romer)

Spatial Structure & Organization

• Clusters (Michael Porter, The Competitive Advantage of Nations, Harvard University Press, 1994)

• Specialization (Ken Arrow)

• Diversification (Jane Jacobs)

• Market Power (Alfred Chandler)

• (Localized) Competition (Ed Glaeser)

• Entrepreneurship

• Global Linkages

RESEARCH, DEVELOPMENT, DESIGN, ENGINEERING AND TECHNICAL CENTERS

Human Dimension

•Networks, linkages & interactions – social capital (AnnaLee Saxenien, Regional Advantage, Harvard University Press, 1994)

• Leadership (Al Link, A Generosity of Spirit, Duke University Press, 1995)

• Identity & Image (Albert O. Hirschman, Exit, Voice and Loyalty, Harvard University Press, 1970)

Policy

• Institutions

• Absorptive capacity mechanisms

• Capabilities

• Global benchmarking

Context Matters

• Mittelstand in Schwanau, Baden-Württemberg

--Herrenknecht, mfg. tunnel boring machines

--Long-Term Orientation, Apprentice System,

--Regional Banks, Family Ownership

• Berlin Entrepreneurship

--“Berlin is the coolest place in the world.

Especially for people in the community of

Internet startups”

-- Caitlin Winner, Co-Founder, Amen Berlin

Entrepreneurship & Strategic Management of Place

Conclusions

• Entrepreneurship Key Strategy in Policy Arsenal for the Strategic Management of Place

•Role, Priority & Configuration Specific to Particular Place

• Instruments Creating & Sustaining Entrepreneurship Place Specific & Embedded in Strategic Management of Place