| Innovation Policy and the Economy
Clusters of Entrepreneurship and Innovation
This chapter reviews recent academic work on the spatial concentration of entrepreneurship and innovation in the United States. We discuss rationales for the agglomeration of these activities and the economic consequences of clusters. We identify and discuss policies that are being pursued in the United States to encourage local entrepreneurship and innovation. While arguments exist for and against policy support of entrepreneurial clusters, our understanding of what works and how it works is quite limited. The best path forward involves extensive experimentation and careful evaluation.
Innovation and Invention;
Chatterji, Aaron K., Edward Glaeser, and William R. Kerr. "Clusters of Entrepreneurship and Innovation." In Innovation Policy and the Economy, edited by Adam B. Jaffe, Josh Lerner, and Scott Stern. Cambridge, MA: MIT Press, 2000.