The co-evolution of entrepreneurship and clusters

The purpose of the paper is to explore theoretically the relationship between entrepreneurship and the development of spatial clusters of firms. How do clusters emerge and thrive? What is the relationship between entrepreneurship and cluster formation? What is the nature and impact of social networks and external economies in cluster development? In this paper, our first claim is that we find both supply and demand-side conditions in clusters for stimulating entrepreneurship. Our second claim is that both pecuniary and non-pecuniary aspects influence entrepreneurship and cluster formation. The final claim argues that entry by spin-off represents a significant factor for cluster development and persistence.