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“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 t
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 agodue 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 agoLondon 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 agoWhile 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.