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Dear Colleagues,

Our next virtual seminar in the Entrepreneurship and Innovation Policy Research series is Wednesday, November 5 from 11:00-12:00 ET. Nikhil Kalathil (Carnegie Mellon University) - will present "The Realized Returns from Varieties of Agglomeration for New Manufacturing Firms" (with Lauren Lanahan). Abstract is below. Click the link HERE to register for the November 5 seminar. 

We hope you join us!

- Tim Folta (UCONN), Maryann Feldman (ASU), and Supradeep Dutta (Rutgers U)

Abstract:  We estimate the returns from varieties of agglomeration for new manufacturing firms. Within each industry, we leverage marginal variation across similarly highly agglomerated counties that the industry operates in, highlighting differences in rates of horizontal and vertical agglomeration. The former identifies geographies with greater co-location of own-industry or peer establishments, and the latter identifies geographies with greater co-location of industry suppliers. Drawing from the population of US manufacturing firms founded between 2012 – 2015 and tracing their performance activity over their first five years of operations, we report differential results for firms operating in horizontally agglomerated counties relative to firms operating in vertically agglomerated counties. We document persistent trends that the appropriability from horizontal agglomeration increases sales by approximately 14 percent for new manufacturing firms. This trend is amplified for ventures located proximate to large, headquartered anchor firms. We report differential performance returns from horizontal agglomeration in manufacturing industries with greater upstream activity, whereas we document contrasting performance benefits for vertical agglomeration for industries operating at later stages of production. Lastly, new manufacturing firms positioned in an outlying manner to the dominant form of their industry's agglomeration report disproportionately greater performance benefits. Our results support the theory that regional and industrial characteristics mediate the exact type of market failures (i.e., transaction costs, information asymmetries, and frictions in network formation) that influence the appropriability of agglomeration assets. This study offers several contributions by providing a framework to understand variation in agglomeration, disentangling the strategic returns from various features of agglomeration, and quantifying the returns from agglomeration on firm performance.

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Thank you for organizing this very interesting session! You may find the following article to appear in the International Small Business Journal of interest, given that it describes a content analysis and review of policy implications of entrepreneurship research:

Bridging Research and Policy in Entrepreneurship: A Review of 4,247 Studies

Can academic research truly shape entrepreneurship policy? A review of 4,247 articles published across ten leading journals between 2010 and 2020 reveals both meaningful progress and persistent gaps. Using behaviorally anchored rating scales (BARS), we examined how effectively published work translates evidence into actionable policy guidance.

1️⃣ Most entrepreneurship research remains disconnected from policy.
Only 11.7% of papers included any policy recommendation, and just 1.4% dedicated an entire section to policy implications. Despite the field's enormous potential to inform decisions about job creation, innovation, and growth, policy relevance is still the exception rather than the rule.

2️⃣ Rigorous research does not always translate into practical advice.
While most recommendations were based on transparent, methodologically sound studies, they rarely addressed real-world considerations such as who should act, what resources are needed, and how success should be measured. Strong empirical design alone does not guarantee usable insights-specificity and feasibility matter just as much.

3️⃣ European journals lead the way in policy relevance.
Nearly 88% of articles offering substantive policy guidance appeared in European outlets, where editorial expectations emphasize societal impact. This difference suggests that institutional culture and incentives strongly shape whether scholarship engages meaningfully with policy audiences.

What does this mean for the field of #entrepreneurship?
Entrepreneurship researchers and journals have a powerful opportunity to close the research–policy gap. By combining rigorous methods with actionable recommendations, future studies can move beyond describing entrepreneurial activity to actively shaping stronger, evidence-based policies and more resilient entrepreneurial ecosystems.

Get the #openaccess article: Aguinis, H., Jensen, S. H., Poček, J., Kraus, K., & Pinelli, M. in press. Public policy implications of entrepreneurship research. International Small Business Journal. https://www.hermanaguinis.com/pubs.html

Watch an AI-generated video: https://youtu.be/F7FLU8QsqP8

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Herman Aguinis, Ph.D.
Avram Tucker Distinguished Scholar & Professor of Management
The George Washington University School of Business
Washington, DC
https://hermanaguinis.com/
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