Work

The Silicon Valley Syndrome

Year: 2021

Type: article

Abstract: How does expansion in the high-tech sector influence the broader economy of a region? We demonstrate that an infusion of venture capital in a region appears associated with: (i) a decline in entrepreneurship, employment, and average incomes in other industries in the tradable sector; (ii) an increase in entrepreneurship and employment in the non-tradable sector; and (iii) an increase in income inequality in the non-tradable sector. An expansion in the high-tech sector therefore appears to lead to a less diverse tradable sector and to increasing inequality in the region.

Source: Entrepreneurship Theory and Practice

DOI: 10.1177/10422587211050892

Authors: Doris Kwon, Olav Sorenson

Institutions: Yale University, University of California, Los Angeles

Language: English

Topic: Agglomeration and Urban Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W3210194754

FWCI: 3.433

Cites: 72

Cited by: 49

Related to: 10