The role of knowledge city features in nurturing entrepreneurship: Evidence from EU cities

Abstract

The present paper aims to answer the following research questions: (i) is the knowledge city environment a stimulus for entrepreneurship? (ii) which profiles of knowledge cities stimulate entrepreneurship most? In order to answer the aforementioned research questions, two multidimensional indexes have been created: Knowledge-Based City Developing Entrepreneurship (KBCDE) and Entrepreneurship (ENT). The sample includes all capital cities in the EU28. The presence of cities from EU28 countries is important to foster the entrepreneurship attitude in each European Country. We have also included 32 non-capital cities in the EU that are important hubs, thus creating a sample formed of 60 cities. Our work tries to contribute to the debate on urban economic development and entrepreneurship, providing a stimulus for academics and urban policymakers. The empirical results show that the social and cultural environment may significantly improve entrepreneurship in EU cities, more than other factors that are usually connected to economic development.