The Geography of Entrepreneurship in the New York Metropolitan Area

[...]This paper builds primarily on research on agglomerationeconomies. Much of the empirical work on agglomeration hassought to estimate the effect on productivity of anestablishment’s local environment. The estimation hassometimes involved direct estimates of productivity(Henderson 2003) and has sometimes involved estimatingcorrelates of productivity, including wages (Glaeser and Mare2001) and growth (Henderson, Kuncoro, and Turner 1995).Our paper is concerned with two productivity correlates:establishment births and new-establishment employment.Prior work on agglomeration and births has established theimportance of the metropolitan environment (Carlton 1983).Rosenthal and Strange (2003) show that agglomeration effectsattenuate geographically for six standard industrialclassification (SIC) industries—software (SIC 7371-73, 75),food products (SIC 20), apparel (SIC 23), printing andpublishing (SIC 27), fabricated metal (SIC 34), and machinery(SIC 35)—that serve national and international markets. Forthese industries, it appears that an establishment’s localenvironment matters most.[...]