曼哈顿政策研究所-企业家主导的经济发展：促进地方增长和生产力的新战略（英文）-2021.5-12正式版

REPORT|May2021ENTREPRENEUR-LEDECONOMICDEVELOPMENT:ANewStrategyforGeneratingLocalGrowthandProductivityIanHathawayCenterforAmericanEntrepreneurshipRhettMorrisCenterforAmericanEntrepreneurshipEntrepreneur-LedEconomicDevelopment:ANewStrategyforGeneratingLocalGrowthandProductivityAbouttheAuthorsIanHathawayisaseniorfellowatboththeBrookingsInstitutionandCenterforAmericanEntrepreneurship.He’scoauthorofTheStartupCommunityWay:EvolvinganEntrepreneurialEcosystem(Wiley,2020)RhettMorrisisapartneratCommonGoodLabsandaseniorfellowattheCenterforAmericanEntrepreneurship.2ContentsExecutiveSummary4FourKeyStepsandThreeKeyPlayers5Conclusion9Endnotes113Entrepreneur-LedEconomicDevelopment:ANewStrategyforGeneratingLocalGrowthandProductivityExecutiveSummaryThebestwayforlocalgovernmentstofostereconomicdevelopmentistosupportentrepreneurship.Policymak-ersshouldfocusonthesmallgroupofgrowth-orientedcompanies—often,butnotalways,inthetechnologysector—thatcansuccessfullyexpand.Thisreportoutlinesacomprehensiveapproach,whichwecall“entrepre-neur-ledeconomicdevelopment,”forworkingwiththeseimportantcompanies.Thegoalistocreatefeedbackloopsbetweenentrepreneurialleadersandotherlocaldecisionmakersandtocultivatenetworksthatconnectsuccessfulentrepreneurialleaderswithfuturegrowth-orientedfounderswhocanusetheirguidancetogrow.Entrepreneur-ledeconomicdevelopmentisafour-stepprocess:1.Identifythesuccessfulentrepreneurialbusinessesintheregion.2.Buildnetworksaroundsuccessfullocalentrepreneurs.3.Partnerwithentrepreneurialleaderstoaddressthemostimportantneedsofgrowinglocalbusinessesandtheirentrepreneurs.4.Collectdataongrowingentrepreneurialbusinessestotrackresultsandsharefindingswiththecommunity.Eachofthesestepsrequirestheinvolvementofdecisionmakersinthreedistinctareas:policymakers,funders,andserviceproviders.Collaborationamongstakeholdersismutuallyenhancing,becausenosingletypeofor-ganizationcanimplementthepolicyonitsown.Importantly,thisworkdoesnotendafterthesefourstepsarecompleted.Entrepreneur-ledeconomicdevelopmentisanongoingprocess.ENTREPRENEUR-LEDECONOMICDEVELOPMENT:ANewStrategyforGeneratingLocalGrowthandProductivityFourKeyStepsandThreeKeyPlayersEconomicdevelopmentisstuckinthepast.Stateandlocalgovernmentsspendmorethan$45billioneachyearonadatedsystemofsubsidiesdesignedfortheindustrialeraofthe1950sand1960s.1Thesesubsidyprogramsprovidepaymentstolargecorporationsthatarecurrentlylocatedelsewhere,inthehopethattheywillrelocateoropennewlocalfacilities.Thepaymentstheyoffernowrepresentnearlythree-quartersofthe$61billioninlocalandstateeconomicdevelopmentspendingeachyear.Unfortunately,thesepaymentsrarelygeneratesignificanteconomicgrowth.2Abetterwaytofostereconomicdevelopmentistosupportentrepreneurship.Inparticular,policymakersshouldfocusonthesmallgroupofgrowth-orientedcompaniesthatcansuccess-fullyexpand.Thoughmanyofthesebusinessesaretechnology-driven,theycanbefoundineveryindustryandsector.3Astheygrow,theycreatelargenumbersofnewjobs,increaselocalproductivity,andgenerateadditionalbenefitsthroughwhateconomistsrefertoas“spillover”and“multiplier”effects.4Supportingtheentrepreneurswhobuildtheselocalbusinessescanprovidetremendousvaluetocitiesandstatesacrossthecountry,anditisalsoextremelycost-effective.Theprogramsandinitiativesthatbenefittheseentrepreneursandtheircompaniesrequireonlyasmallfractionoflocaleconomicdevelopmentspending.Thisreportoutlinesacomprehensiveapproach,whichwecall“entrepreneur-ledeconomicde-velopment,”forworkingwiththeseimportantcompanies.Thegoalistocreatefeedbackloopsbetweenentrepreneurialleadersandotherlocaldecisionmakersandtocultivatenetworksthatconnectsuccessfulentrepreneurialleaderswithfuturegrowth-orientedfounderswhocanusetheirguidancetogrow.5Stateandlocalleadersshouldtakefourstepstoachievethesegoals.First,identifythesuccess-fulentrepreneurialbusinessesintheregion,thelocalstrengthstheyrepresent,andthekeyleadersbehindtheirgrowth.Second,buildnetworksaroundsuccessfullocalentrepreneurstoconnectthemwithfoundersoflocalbusinesseswithsignificantgrowthpotential.Third,partnerwithentrepreneurialleaderstoaddressthemostimportantneedsofgrowinglocalbusinessesandtheirentrepreneurs.Fourth,collectdataongrowingentrepreneurialbusiness-estotrackresultsandsharefindingswiththecommunity.Foreachofthesesteps,wewilldiscusstheimplicationsthatthisstrategyhasforlocaldecisionmakersinthreekeyareas:5Entrepreneur-LedEconomicDevelopment:ANewStrategyforGeneratingLocalGrowthandProductivityPolicymakers.Theseincludeelectedrepresentativesaregrowingthefastest.Missouri,forexample,usesdataandeconomicdevelopmentstaff,aswellaspeoplefromtheQuarterlyCensusofEmploymentandWageswithsignificantinfluenceonpolicy,suchasexecutivestoanalyzeyoungandgrowingbusinessesbyindustryatchambersofcommerce,businessassociations,andandtechnologysegment.10Membershiprollsfromtheothercivicgroups.chambersofcommerceandotherorganizationsmayalsoincludekeyinformationoncompaniesandindividuals.Funders.Thesecanincludelocalphilanthropists,communityfoundations,stateandlocalgovernments,economicdevelopmentagencies,corporations,andFundersotherprivatesourcesofcapital,suchasangelandven-ture-capitalinvestors.6LocalfoundationsandotherorganizationsthatfinanceentrepreneurshipprogrammingoftenhaveaccesstoServiceProviders.Theseactorsprovidedirectprivatedatabaseswithvariousmeasuresofbusinesssupporttohigh-growthentrepreneurs.Theyincludegrowth.Thoughnotalwaysasaccurateaspublicin-operatorsofaccelerators,incubators,venturestudios,formation,thesedatacanofferspecificdetailsonin-andstartup-orientedofficespaces.dividualcompanies.TheycanalsobeaggregatedandcomparedwithotherregionstohelpcontextualizeStep1:Identifythesuccessfulentrepreneuriallocalfindingsinwaysthatdatarestrictedtosinglegeo-businessesintheregion,thelocalstrengthsgraphicareascannot.11theyrepresent,andthekeyleadersbehindtheirgrowth.ServiceProvidersThefirstbenefitthatsuccessfulentrepreneursprovidetheircommunitiesissimplyofferinganexampleofThebusinessaccelerators,incubators,andwhattypesofentrepreneurshiphavealreadyworked.otherorganizationsthatdirectlysupportlocalButevenprosperousbusinessescanflyundertheentrepreneurshaveaccesstoprogramandparticipantradar,thusdeprivingleadersofthechancetolearndataonthecompaniestheyserve.Thesedataareevenfromtheirexample.morecurrentthangovernmentrecordsandmoreaccuratethannationalbusinessandventure-capitalResearchinKnoxville,Tennessee,illustratesthispoint.7databases,thoughtheycoverasmallersampleoflocalThecityboastsseveraldozensuccessfultechnologycompanies.Althoughmuchofthisinformationwillcompanies,butwhenregionalstakeholderswereaskedremainconfidential,publishingthecompanynames,tonameasmanyastheycould,thetypicalintervieweeoperatingstatus,andprogramdatesisadditive,asiscouldnameonlytwoorthree.8Asimilarawarenessgappublishinglistsofrelevantprogramleaders,mentors,hasbeendocumentedinotherU.S.regions.9andothernetworkmembers.YCombinatorandTechstars,twoleadingacceleratorprograms,publishThefirststep,therefore,istomakeaconcertedeffortthisinformationontheirwebsites.12toidentifyalltheentrepreneurialbusinessesintheregionthathavedemonstratedsignificantgrowthorCombiningthesesourcesofinformationwillhelpillu-thataregainingthetypeofearlytractionthattypicallyminatethefactorsrelatedtoentrepreneurialstrengthsprecedeshighgrowth.Toensurethattheidentificationinacommunity.Thesestrengthscanincludespecificprocessisrobust,itisimportanttoincorporatedataindustries,typesofcustomers,enablingtechnolo-fromacrosstheentirecommunityandnotfocussolelygies,andevenparticipationinalocalorganization.onthemostwell-knownfounderswhoarefrequentlyUnderstandingthesetypesofstrengthscanempowerfeaturedinlocaleventsandinthemedia.decisionmakerstofocusonareaswherelocalentre-preneursarealreadyleadingandtodemonstratethatsuccessispossible.PolicymakersStep2:BuildnetworksaroundsuccessfullocalGovernmentsalreadycollectdetailedinformationonentrepreneurstoconnectthemwithfounderstherevenueandemploymentofcompaniesoperatingoflocalbusinesseswithsignificantgrowthpo-intheirjurisdictionfortaxpurposes.Whilethedataoftential.individualcompaniesareconfidential,analysisoftrendsacrossbusinessescangenerateanonymizedfindingsthatOneofthemostimportantthingsthatsuccessfulentre-offerusefulinsightsonthetypesoflocalcompaniesthatpreneurscandofortheircommunityistohelpthose6Policymakerswhowanttofollowintheirfootsteps.Theycandosoinseveralways:Publicofficialscanusetheirofficestorecognizeleadersatgrowingcompanieswhoareactiveinsupportingotherbusinessfoundersinthecommunity.Theycan•Actingasmentorsandprovidingadvice;•Helpingconnectfounderswithpotentialcustomers,invitebusinessleaderstoparticipateinlocalsupportpartners,employees,andinvestors;programsdesignedtohelpgrowingcompanies.GregFischer,mayorofLouisville,Kentucky—andasuccess-fulentrepreneurbeforeenteringpolitics—hashelpedstrengthenthenetworksinthecitybyconnectingen-•Providingcapitalasearly-stageinvestors;•Leadinglocalsupportprogramsbyservingasboardtrepreneurstolocalsupportorganizations.19members,executives,andvolunteers;and•PartneringwithotherentrepreneurstostartnewFundersbusinessesandhelpingtotraintheircofoundersandemployeesintheprocess.Mostfundingorganizationsdolittletoconnectgrowingcompanieswithsuccessfulfounders,whoEntrepreneurialsuccessdependsonlocalnetworks.13canprovidevaluablementorshipandotherformsTop-performingentrepreneurshipcommunities,suchofsupport.OnenotablecounterexampleistheasSiliconValleyandBoston,benefitfromthedensityKnightFoundation,whichsupportshigh-growthoflocalrelationshipsaswellasthehighlevelsofpartic-entrepreneursinMiamibyfundinginitiativesthatipationfromthemosttalentedpeople.14Researchin-expandtheavailabilityoflater-stagecapital,increasedicatesthatentrepreneurialbusinesseswithstrongerinclusion,andoffermentorshipexclusivelytargetedtiestothesenetworksperformbetter.15tofast-growinglocalbusinesses.20Cultivatingnetworksbetweensuccessfulentrepre-neursandfuturefoundersisthuscritical.However,ServiceProviderspolicymakerstoooftenfocusonlyongeneratinglargerquantitiesofresources—suchascapital,officespace,Organizationsthatdirectlysupportentrepreneursorprograms—withoutregardtoconnectionsbetweenshouldbuildnetworksaroundleadersatgrowingthosewhowillusetheseresources.companiesbyconnectingthemtopotentialmentors,customers,employees,andinvestors.HighAlphainManyserviceproviders,suchasacceleratorprograms,Indianapolis,forexample—afirmlaunchedbyScottarebuiltaroundmentorandinvestornetworks,whichDorsey,whopreviouslyfoundedthesuccessfullocalconstituteasignificantportionoftheirvalueproposi-techcompanyExactTarget—operatesaventurestudiotion(beyondinvestmentcapital).16Theseprogramscanandinvestmentfund.HighAlphanotonlyprovidesbeveryeffective,butthecommunitysufferswhentheirservicesbutalsoexplicitlyworkstofosternetworksinnetworksareclosedorcompetitivewithoneanother.supportoffounders.21ConsiderBuffalo,NewYork,17whereabout20localInhelpingtobuildastrongnetwork,leadersshouldprogramsworktosupportentrepreneurs.Thoughthinkonabroadscale.Thereareoftenopportunities,manyoftheseinitiativestargetsimilarindustriesandespeciallyinareasthathaveexperiencedtalentflight,evensharethesamefundingsources,thenetworksoftoengagewithsuccessfulentrepreneurialleaderswhotheseprogramsrarelyoverlap—afterafounderdevel-grewuporattendedschoolinthecommunitybutnowopsarelationshipwithone,heisunlikelytoformrela-liveelsewhere.22Itisimportanttofocusnotonlyontionshipswithanotherlocalprogramororganization.high-techfirmsbutacrossallsectorsoftheeconomy.23Thelackofcross-pollinationacrossthesenetworksmeansthatlocalfoundershavefeweropportunitiestoDecisionmakersshouldstrivetoensurethattheseaccessresources,shareinformation,andsupportonenetworksarediverseandaccessibletoall.Adiversi-another.18tyoftalentandideasfavorsinnovation,whileclosednetworkscreatefrictionsthatharmentrepreneurs.24ThesuccessfulcreationofastrongentrepreneurialEnsuringdiversityrequiresactivelyengagingwithnetworkisnotataskforanyoneinstitution;itrequiresvariousunderrepresentedgroups,definedintermsofthecontributionsofleadersfromallareas.socioeconomicstatus,race,ethnicity,gender,orgeo-graphicorigin.7Entrepreneur-LedEconomicDevelopment:ANewStrategyforGeneratingLocalGrowthandProductivityPolicymakersStep3:Partnerwithentrepreneurialleaderstoaddressthemostimportantneedsofgrowinglocalbusinessesandtheirentrepreneurs.Stateandlocalgovernmentsshouldcreateadvisoryboardscomposedoflocalentrepreneurstohelpiden-Successfulentrepreneursknowthatoneofthefirsttifyopportunitiestoimprovepoliciesandregulations.thingstheymustdoislearnwhotheircustomersareAdvisoryboardmembersshouldmeetregularlywithandunderstandtheirpainpoints.Decisionmakersofficialsasindividualsandasagroup.Itisimportanttryingtopromoteentrepreneurshipshouldtrytodothetohavepersonnelwhocanactasambassadorsbetweensamething,byworkingcloselywithbusinessfoundersgovernmentandentrepreneurs—forexample,Seattle’sinordertounderstandwhattheirbiggestburdensareStartupAdvocate,amemberofthecity’sOfficeofEco-andhowtheymightbefixed.RecentevidencevalidatesnomicDevelopmentwhohelpsconnectentrepreneurstheneedfordecisionmakerstobetterengagewithtotheresourcestheyneed.entrepreneurs.25EntrepreneurstalktooneanotherandoftenworkFunderstogethertosolvecollectivechallenges.Theyhavedeepknowledgeoftheproblemstheyfacethemselves,aswellOrganizationsthatfundentrepreneurshipprogramsasthosefacedbyotherfoundersinthesameregion.shouldestablishtheirowncommitteesofentrepre-Successfulentrepreneursarealsoexpertsatsolvingneurialleaderstoadviseontheseinvestments.Allproblems;fundamentally,thatiswhatentrepreneursfundingshouldbelinkedtomeetingperformanceob-do.Ifentrepreneurshaveideasforcreatingnewjectivesand,overtime,shouldbematchedwith,orfullysolutions,decisionmakersinallareasshouldlookforreplacedby,additionalfundingstreams.TheEwingwaystopartnerwiththem.MarionKauffmanFoundation,whichhasworkedformanyyearsinKansasCitytosupportinnovativeen-trepreneurshipprogramsforgrowinglocalcompanies,hasillustratedtheimportanceofensuringthatitsfi-nancialsupportisacatalystfororganizations,ratherthanapermanentmechanismforfinancingoperations.8ServiceProvidersPolicymakersOrganizationsthatprovideservicestoentrepreneursStakeholderswhoimplementnewpoliciesbasedonshouldrecruitsuccessfulentrepreneursintoleadershipthefeedbackofgrowingentrepreneursshouldconductroles,especiallyasboardmembersoradvisors.Wherefollow-upsurveystoensurethatthenewinitiativesarepossible,organizationsshouldrecruitentrepreneurialhavingthedesiredeffect.Thesesurveysshouldincludeleadersastheday-to-daydirectorsorCEOsoftheirbothformaldatacollectionandinformalconversationsorganizations,whichpromotestheleadershipoflocal(preferablyfromanongoingdialogue).foundersandprovidestheorganizationwithcriticalsocialcapital.InnovationWorks,apubliclyfundedor-ganizationthatisbyfarthelargestseed-stageinvestorFundersinPittsburgh,demonstratesthevalueofthisapproach.TheorganizationisledbyRichLunak,asuccessfulen-Organizationsthatfinanceentrepreneurshipprogramstrepreneurwhoworkedinrobotics,oneofthecity’sshouldensurethattheirprogrambudgetsincludesig-technologicalstrengths.UnderLunak’sleadership,In-nificantfundingforevaluation.Ataminimum,fundersnovationWorkshasmadeinvestmentsinanumberofshouldmeasurethegrowthofthebusinessesthatpar-theregion’smostsuccessfultechnologyfirms,includ-ticipateineachprogram.Thosethatwishtogofurtheringseverallarge“liquidityevents”(i.e.,asaleorlistingcanundertakenetworkmappingtoevaluatehowen-ofsharesonapublicexchange).26trepreneurialleadersatgrowingfirmsarementoring,investing,andstartingnewcompaniesinthecommu-Step4:Collectdataongrowingentrepreneur-nity.Forexample,thePartnershipforNewYorkCityialbusinessestotrackresultsandsharefind-supportedacomprehensivenetworkstudytoidenti-ingswiththecommunity.fyhowfoundersinNewYork’stechsectorwerecon-structingnetworksaroundthemostsuccessfulentre-Decisionmakersneedactionableinformationtoassesspreneursthroughlocalprograms.27andimprovetheperformanceofentrepreneurshipprograms.Thiscanincludedataonentrepreneurialstrengths,thestatusofthelocalentrepreneurshipServiceProvidersnetwork,andtheemergingneedsoflocalbusinessfounders.ThisinformationshouldbedrawnfromaProgramsthatsupportentrepreneursshouldmeasuremixofsources,includinggovernmentdata,surveysthegrowthofthecompaniestheysupportintermsofofentrepreneurs,andinterviewswithkeyinfluencerslocaljobcreation,increasesinrevenues,capitalraised,inthecommunity,aswellasparticulardatabasesonandotherrelevantmetrics.Thebestserviceprovid-individualcompanies,suchasPitchBookorDun&ersgoevenfurther,bymeasuringhowwelltheyhaveBradstreet.engagedthebestlocalentrepreneursasleadersintheirprogramsandbyevaluatinghowthefounderswhomCapturing,analyzing,anddisseminatingdataonatheysupportaregivingbacktoothersbyactingasregularschedulehelpstoensurethatdecisionsarementors,peeradvisors,andeveninvestors.informedandtoestablishacultureofdata-drivendecision-making.Dependingontheparticularmetric,datashouldbeupdatedandsharedonaquarterly,Conclusionsemiannual,orannualbasis.Eventsanddiscussionscanbebuiltarounddatareleasestoserveasproductiveformsofcommunityengagement.Themostimportantparticipantsinentrepreneur-ledeconomicdevelopmentaresuccessfullocalentrepre-Finally,transparencyindatacollectionandneursandthefoundersatgrowingcompanieswhomethodologyofanalysisisessentialtoestablishingbenefitfromtheirsupport.However,policymakers,credibility,drivingengagement,andchangingfunders,andserviceprovidersalsoplayessentialrolesbehavior.Toofrequently,thelimitationsofdatainsupportingtheseactivities.sourcingareobscuredandanalyticalapproachesareputintoa“blackbox.”TransparencybuildstrustandCollaborationamongdecisionmakersismutuallyen-producesmorehonestdiscussionsaroundwhatistohancing.Forexample,nosingletypeoforganizationbelearned.hasallthedatanecessaryforidentifyingeverygrowingentrepreneurialbusinessinacity;butwhenstakehold-ersworktogethertocombinetheircollectiveresourc-es,amorecompletepicturecanemerge.9Entrepreneur-LedEconomicDevelopment:ANewStrategyforGeneratingLocalGrowthandProductivityUnfortunately,itoftentakesjustonestakeholdertostifleprogress.Iffunderschoosetofinanceprogramsincompletelydifferentareasfromwheresuccessfulfoundersareoperating,thelocalentrepreneurshipcommunitycanfracture.Or,ifgovernmentofficialsleaveoutdatedregulationsunchanged,itcanbediffi-cultforcompaniestogroweveniftheyhavesupportivenetworks.Entrepreneursatgrowingcompaniesareessentialtolocalprosperity.Entrepreneur-ledeconomicdevel-opmentoffersaprocessthatdecisionmakerscanusetocomplementtheirexistingeconomicdevelopmentprogramsandenhancesomeofthemostvaluableeco-nomicassetsalreadygrowingintheircommunities.Importantly,thisworkdoesnotendafterthesefourstepsarecompleted.Entrepreneur-ledeconomicde-velopmentisanongoingprocess.Themeasurementandevaluationofexistingprogramsandinitiativesshouldflowdirectlybackintotheidentificationofnewentrepreneurialbusinessesthathavebeengrowingintheregion,thelocalstrengthstheyrepresent,andthekeyleadersbehindtheirsuccess.Localdecisionmakersshouldincorporatethedynamicnatureofthisprocessintotheirannualplanningactivitiesorcreatefasteriterationcycleswheresupportandfeedbackactivitiesoccurseveraltimeseachyear.10Endnotes123TimothyJ.Bartik,“UsingPlace-BasedJobsPoliciestoHelpDistressedCommunities,”JournalofEconomicPerspectives34,no.3(Summer2020):99–127.CailinSlatteryandOwenZidar,“EvaluatingStateandLocalBusinessIncentives,”JournalofEconomicPerspectives34,no.2(Spring2020):90–118.DavidBirchandJamesMedoff,“Gazelles,”inLaborMarkets,EmploymentPolicy,andJobCreation,ed.LewisC.SolmonandAlecR.Levenson(NewYork:Routledge,2018);ZoltanJ.Acs,WilliamParsons,andSpencerTracy,“High-ImpactFirms:GazellesRevisited,”CorporateResearchBoard,LLC,June2008;DavidB.Audretsch,“DeterminantsofHigh-GrowthEntrepreneurship,”OrganisationforEconomicCo-operationandDevelopment(OECD),Mar.28,2012;RichardL.Claytonetal.,“High-Employment-GrowthFirms:DefiningandCountingThem,”BureauofLaborStatistics,MonthlyLaborReview(June2013);JohnHaltiwangeretal.,“High-GrowthYoungFirms:ContributiontoJob,OutputandProductivityGrowth,”CenterforAdministrativeRecordsResearchandApplications,U.S.CensusBureau,February2017;IanHathaway,“High-GrowthFirmsandCitiesintheU.S.:AnAnalysisoftheInc.5000,”BrookingsInstitution,Feb.5,2018;LeahD.BartoandRhettMorris,“HowCitiesCanIdentifytheBestBusinessesforLocalEconomicGrowth:ANewApproachtoIncreasingLocalProductivityandPreventingDecline,”EndeavorInsight,September2020.4EnricoMoretti,TheNewGeographyofJobs(NewYork:HoughtonMifflinHarcourt,2012);AaronChatterji,EdwardGlaeser,andWilliamKerr,“ClustersofEntrepreneurshipandInnovation,”InnovationPolicyandtheEconomy14,no.1(2014):130–66.56Theideassharedinthispaperbuildonpreviousworkthatwehavepublishedwithcoauthors,includingLeahBarto,BradFeld,andLiliTörök.Whilegovernments,inparticular,havebeenslowtoadapttotheneedsofsupportingentrepreneurship,morethan100communityfoundationsmakegrantsthatsupportentrepreneurship,atrendthathasgrowninrecentyears.See,e.g.,CarolinePringleandLiliTörök,“FoundationsLeadingThroughEntrepreneurship:ANewPhilanthropicTrendtoCreateJobs,ImproveQualityofLife,andStrengthenLocalGiving,”EndeavorInsight,Aug.19,2015.78Techstars,“AssessmentoftheEntrepreneurshipEcosystemoftheGreaterKnoxvilleMetropolitanArea,”January2021.Asignificantlysuccessfultechcompanywasdefinedasmeetingatleastoneofthreecriteria:(1)raisingover$1millioninexternalfundingviagrantsorequityinvestment;(2)employing50ormorepeople;or(3)experiencinganacquisitionthatyieldedpositivereturnsfortheentrepreneursandtheirinvestors.9Techstars,“AssessmentoftheEntrepreneurshipEcosystemintheHamptonRoadsRegion,”April2021.10MariaE.Meyers,KatePopeHodel,andJonKrajack,“ShowMeJobs:TheImpactofFirst-TimeEmployersonJobCreationinMissouri,”MOSourceLink,July2020.11Forstrongexamples,seeIanHathaway,“Start-UpCapitalIsSpreadingAcrosstheU.S.,”HarvardBusinessReview,Feb.23,2015;idem,“High-GrowthFirmsandCitiesintheU.S.”;RichardFloridaandIanHathaway,“RiseoftheGlobalStartupCity:TheNewMapofEntrepreneurshipandVentureCapital,”CenterforAmericanEntrepreneurship,Oct.5,2018.12SeeYCombinator,“StartupDirectory”;Techstars,“PortfolioCompanies.”13TomKemenyetal.,“TheEconomicValueofLocalSocialNetworks,”JournalofEconomicGeography16,no.5(September2016):1101–22;RhettMorrisandLiliTörök,“FosteringProductiveEntrepreneurshipCommunities:KeyLessonsonGeneratingJobs,EconomicGrowth,andInnovation,”EndeavorInsight,October2018;BradFeldandIanHathaway,TheStartupCommunityWay:EvolvingandEntrepreneurialEcosystem(Hoboken,NJ:JohnWiley&Sons,2020).14MaryannFeldmanandTedD.Zoller,“DealmakersinPlace:SocialCapitalConnectionsinRegionalEntrepreneurialEconomies,”RegionalStudies46,no.1(January2012):23–37;Kemenyetal.,“TheEconomicValueofLocalSocialNetworks”;MorrisandTörök,“FosteringProductiveEntrepreneurshipCommunities”;BradFeld,StartupCommunities:BuildinganEntrepreneurialEcosysteminYourCity(Hoboken,NJ:JohnWile