This document discusses Joseph Schumpeter and his views on entrepreneurship and cities. It provides background on Schumpeter and summarizes some of his major works. The document then discusses three key acts of entrepreneurs and the triangular relationship between entrepreneurship, innovation, and location. It analyzes how cities provide a platform for entrepreneurial action and discusses factors like locational conditions, business environment, and culture that influence entrepreneurship in cities. The document also reviews literature on entrepreneurship and discusses how the urban environment can incubate innovative entrepreneurs and attract creative firms.

1. JOSEPH SCHUMPETER TRAVELS TO TRENTO:
THE NEXUS OF ENTREPRENEURSHIP AND THE CIYY
PETER NIJKAMP
KARIMA KOURTIT
“Trento, here I come”
JADS, ‘s-Hertogenbosch, The Netherlands

2. JOSEPH SCHUMPETER (1883-1950)
AUSTRIA – GERMANY – US
ECONOMIST AND POLITICAL SCIENTIST
INSPIRED BY: KARL MARX
MAX WEBER
NIKOLAJ KONDRATIEV
LUDWIG VON MISES
LÉON WALRAS

3. WORKS:
CAPITALISM, SOCIALISM AND DEMOCRACY
BUSINESS CYCLES
THE THEORY OF ECONOMIC DEVELOPMENT
NOTE:
LESS INTEREST IN URBAN FABRIC AND IN IMPACTS OF
ENTREPRENEURSHIP ON MORPHOLOGY OF CITIES

4. WHAT ARE THREE MOST INNOVATIVE
ACTS OF AN ENTREPRENEUR:
• TO START A COMPANY AND SELECT A PRODUCT OR SERVICE
• TO CHOOSE A LOCATION AND TO FIND A MARKET
• TO DEVELOP A RADICALLY NEW PRODUCTION OR SERVICE SYSTEM

5. TRIANGULAR RELATIONSHIP
BETWEEN:
• ENTREPRENEURSHIP AND INNOVATION
• PRODUCT PACKAGE AND INDUSTRIAL NETWORKS
• LOCALITY AND URBAN MARKET

6. RELEVANCE OF SPACE (REGION, CITY):
• PLATFORM OF ENTREPRENEURIAL ACTION
• ARENA OF SPATIAL DEVELOPMENT AND
BUSINESS DYNAMICS
• ‘RURBAN’ INTERFACE, FROM A
MICROCOSMIC PERSPECTIVE (KOURTIT)

7. Systemic View on the City
• City is a spatially coherent and functionally
integrated geographical system
• Illustration of the above statement: ancient
cities
• Modern conceptualization: Piazza Model
• Characteristics of Piazza Model:
o Organized spatial entity
o Multiple layers and dimensions
o Multi-functional and multi-client fabric
o Citizen-oriented
o Adaptive evolutionary mechanism
Source:
Kourtit, K., Nijkamp, P., Franklin, R.S. and Rodríguez-Pose, A. (2014), A
Blueprint for Strategic Urban Research: the 'Urban Piazza', Town Planning
Review, 85 (1). 97-126.
Manifestation of the
Microcosmic Principle!
7

8. ENTREPRENEURSHIP:
• LOCATIONAL AND LAND-USE CONDITIONS IN
CITIES
• RISK MANAGEMENT IN URBAN BUSINESS
ENVIRONMENT
• OPEN BUSINESS CULTURE IN CITIES (X-
EFFICIENCY)
• CALIMERO-EFFECT: FROM MOUSE TO
ELEPHANT

9. CONCEPTUALISATION OF
ENTREPRENEURSHIP
VARIETY IN ENTREPRENEURS:
• NEW AND INCUMBENT
• SMALL AND LARGE
• FORMAL AND INFORMAL
• HIGH-RISK AND LOW-RISK
• HIGH AND LOW ACCESS TO FINANCIAL SUPPORT (SASSEN)
• KNOWLEDGE-POOR AND KNOWLEDGE-RICH (BOSCHMA)
• EMERGING MARKETS AND DECLINING MARKETS
• ETC.

10. EXTANT LITERATURE ON ENTREPRENEURSHIP:
EARLIER STUDIES:
• MARSHALL (1890)
• KNIGHT (1921)
• SCHUMPETER (1934)
• SCHULTZ (1980)
• PIORE AND SABEL (1984)
• O’FARREL (1986)

11. MODERN STUDIES:
• MALECKI (1991)
• AUDRETSCH AND FELDMAN (1996)
• GORDON AND McCANN (2000)
• PORTER (2000)
• ACS ET AL. (2002)
• LEVER (2002)
• ASHEIM (2006)
• ANDERSSON (2013)
• STOUGH (2014)

12. EMERGENT FEATURES:
• FIRM DYNAMICS – FIRM DEMOGRAPHY
• ENTREPRENEUR – OWNER (OFTEN SME)
• INNOVATOR - IMITATOR
• MANAGER ≠ ENTREPRENEUR

13. MODERATOR VARIABLES:
• INDEPENDENCE HABITUS (‘NI DIEU, NI MAITRE’)
• AGE-SPECIFIC COHORTS
• NETWORK STRUCTURES
• LOCAL CULTURE – LOCAL DNA
• REGULATORY SYSTEMS IN CITY
• INSTITUTIONAL FACTORS (GERTLER, STORPER &
SCOTT)
• INDUSTRIAL ORGANISATION (NELSON & WINTER)

14. ENTREPRENEURSHIP AND URBAN
SPACE
PRE-EMINENT ENTREPRENEURIAL DECISION:
WHERE?
LOCATIONAL FACTORS: TERRITORIAL CAPITAL
(CAMAGNI, CAPELLO)
DISTINCTION BETWEEN FIRM FORMATION,
GROWTH AND HISTORY (VAN GEENHUIZEN, ACS)

15. URBAN OR METROPOLITAN ENVIRONMENT:
- INCUBATOR CONDITIONS FOR INNOVATIVE
ENTREPRENEURS -- IN SEARCH OF HIGH-
PERFORMING CHAMPIONS (FLYING DISC MODEL;
KOURTIT)
- ATTRACTION FORCE OF CULTURAL HERITAGE FOR
CREATIVE FIRMS (URBAN CULTURAL COMPLEX;
KOURTIT & NIJKAMP)
- INDUSTRIAL CLUSTERS AND URBAN NETWORKS
(SMART & KNOWLEDGE-BASED CITIES; MARSHALL,
PORTER, GORDON & KOURTIT)
- MIGRANT ENTREPRENEURSHIP (SMEs) IN LARGE
CITIES (‘SOHO’-COMPLEX; KOURTIT)

16. 16
Architecture of
the “flying disc”
Model of Firms’
Business
Performance in
Geographical
Space
Source:
Kourtit, K. and Nijkamp, P. (2013),
In search of creative champions in
high-tech spaces: A spatial
application of strategic performance
management, Journal of Regional
Science, 53: 749-777.

18. Competitive Rivalry
Supply
Power
Substitutes
New
Entrance
Buyer
Power
Figure 2. Porter's Five Forces Model
Source: Authors’ image derived from M. E. Porter, The Five Competitive Forces That Shape Strategy, Harvard
business Review, January, 86, no. 1 , 2008, pp. 27

19. CONCEPTUAL FRAMEWORK
BUSINESS MODEL OF MIGRANT ENTREPRENEURSHIP: STRATEGIES FOR DIVERSIFICATION(MAINSTREAMING)
19 Source: Ansoff Matrix (1957), adjusted by authors
Systematic strategic framework of migrant entrepreneurship that is helpful for mapping out new
business growth strategies and opportunities derived from the Ansoff (1957) model

20. ENTREPRENEURSHIP AND INTELIGENT NETWORKS
• NEW INDUSTRIAL ORGANISATION (e.g., SUPPLY
CHAINS, VERTICAL DISINTEGRATION)
• KNOWLEDGE-BASED NETWORKS (AMIN &
THRIFT)
• ICT (e.g., PoD, B2B)
• SHARING ECONOMY
• PROSUMPTION IN DIGITAL PLATFORM SOCIETY
(MARSDEN)
• CIRCULAR ECONOMY

21. QUESTIONS:
• DESIGN AND OWNERSHIP OF INDUSTRIAL NETWORKS?
• ACCESS CONDITIONS OF ACTORS TO NETWORKS?
• VOLATILITY AND ZERO-DISTANCE (‘SUPER-PROXIMITY’)?
• SMALL MARKET NICHES FOR GRAND IDEAS?
• POLICY CHALLENGES: CREATION OF FAVOURABLE SEEDBED
CONDITIONS FOR SMEs?