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Go West Young Firm: The Value of Entrepreneurial Migration for Startups [pdf]

29 points by mcenedella 8y ago

mcenedella 8y ago
“A new firm choosing a location must trade off the agglomeration benefits of a destination with the loss of local embeddedness from leaving home. I study this tradeoff for a large sample of growth-oriented startups born between 1988 and 2014, who might move to Silicon Valley. The results show migrants improve their performance across a range of outcomes, including equity sale, patenting, commercialization, venture capital financing, and sales. In spite of these benefits migration, many potential migrants do not move; a subsample analysis suggests this is due to high personal costs from leaving home that make migration personally unprofitable.”
- tonyedgecombe 8y ago
  due to high personal costs from leaving home that make migration personally unprofitable. There is a high cost not just to entrepreneurialism but also our hyper-specialisation. If your niche is narrow enough then you will be forced to move from friends and family. I can see this when I look at the whose hiring thread each month, there are plenty of jobs in London but almost nothing outside. I suppose remote work is the solution but it seems hard to make it work anywhere but at the most enlightened workplaces.
  - BerislavLopac 8y ago
    > there are plenty of jobs in London but almost nothing outside Don't worry, that is going to change in about nine months or so...
    - tonyedgecombe 8y ago
      London will be fine, it's the regions that are likely to suffer. This is somewhat ironic as it was the regions that voted for it.
      - BerislavLopac 8y ago
        While it might be "less worse", I don't think London will be "fine". I'm pretty sure the big banks will bail will flee within a year, which will trigger a huge set of dominoes.
__derek__ 8y ago
The title needs a PDF tag.
- sctb 8y ago
  We've updated the link from https://poseidon01.ssrn.com/delivery.php?ID=543090115005102091073117103092082031000088051011052055098092025112029114031086098022038102053054023043125069126127075024122080105039082035013125027092027079001104116038055022078085008114119087068121002092012020065116089091101003114028098066017008064022&EXT=pdf https://poseidon01.ssrn.com/delivery.php?ID=5430901150051020... to the abstract so readers don't get the PDF with the annoying disposition.

29 points by mcenedella 8y ago

“A new firm choosing a location must trade off the agglomeration benefits of a destination with the loss of local embeddedness from leaving home. I study this tradeoff for a large sample of growth-oriented startups born between 1988 and 2014, who might move to Silicon Valley. The results show migrants improve their performance across a range of outcomes, including equity sale, patenting, commercialization, venture capital financing, and sales. In spite of these benefits migration, many potential migrants do not move; a subsample analysis suggests this is due to high personal costs from leaving home that make migration personally unprofitable.”

tonyedgecombe 8y ago
due to high personal costs from leaving home that make migration personally unprofitable. There is a high cost not just to entrepreneurialism but also our hyper-specialisation. If your niche is narrow enough then you will be forced to move from friends and family. I can see this when I look at the whose hiring thread each month, there are plenty of jobs in London but almost nothing outside. I suppose remote work is the solution but it seems hard to make it work anywhere but at the most enlightened workplaces.
- BerislavLopac 8y ago
  > there are plenty of jobs in London but almost nothing outside Don't worry, that is going to change in about nine months or so...
  - tonyedgecombe 8y ago
    London will be fine, it's the regions that are likely to suffer. This is somewhat ironic as it was the regions that voted for it.
    - BerislavLopac 8y ago
      While it might be "less worse", I don't think London will be "fine". I'm pretty sure the big banks will bail will flee within a year, which will trigger a huge set of dominoes.

__derek__ 8y ago

The title needs a PDF tag.

sctb 8y ago
We've updated the link from https://poseidon01.ssrn.com/delivery.php?ID=543090115005102091073117103092082031000088051011052055098092025112029114031086098022038102053054023043125069126127075024122080105039082035013125027092027079001104116038055022078085008114119087068121002092012020065116089091101003114028098066017008064022&EXT=pdf https://poseidon01.ssrn.com/delivery.php?ID=5430901150051020... to the abstract so readers don't get the PDF with the annoying disposition.