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{{McNair ProjectsAcademicPaper|Project TitleHas title=The Impact of Entrepreneurship Hubs(Academic Paper)|Topic Area=Entrepreneurship Ecosystemson Urban Venture Capital Investment|OwnerHas author=Todd RachowinEd Egan, Ariel Sun|Start Term=Spring 2016|Status=Active|Deliverable=Academic PaperYael Hochberg|AudienceHas RAs=Academics|Keywords=Hubs, Incubators, Accelerators, Venture, Capital, Angel, InvestorHira Farooqi, Startups|Primary BillingHas paper status=AccNBER01Tabled

The Entrepreneurship hubs have recently emerged as a stable institutional form and as popular and important components of entrepreneurship ecosystems. Hubs Research Project is a fullare membership-based co-working flex-spaces with specialized services and resources for nascent start-length academic paper analyzing up firms. Examples of hubs include the effectiveness Capital Factory in Austin, Texas, 1871 in Chicago, Illinois, and 1776 in Philadelphia, Pennsylvania. Each of "these hubs"has around 50, 000sqft of workspace for almost a component thousand members working at hundreds of the start-ups. Each also includes an accelerator program, has daily events, classes and meetings related to entrepreneurship ecosystem, and hosts venture capitalists, angel investors, and service firms.Hubs provide a very high degree of agglomeration. Agglomeration is particularly important in entrepreneurship because it facilitates learning and failure is frequent. Entrepreneurs can then learn from other entrepreneurs as well as industry professionals; and when a start-up based in a hub fails, the advancement firm’s human resources can be quickly and growth efficiently absorbed into another venture. We might therefore expect that the introduction of a hub will lead to a greater degree of entrepreneurial success activity in a metropolitan arearegion. This research paper will primarily be focused use a difference-in-difference approach to estimate the effect of the introduction of a hub on large seed and early stage venture capital investment in an area. The empirical methodology of the paper is closely aligned with the methodology in Fedher and mid-sized Metropolitan Statistical Areas Hochberg (MSAs2015). The decision of a hub to locate itself in an area is expected to be highly correlated with existing characteristics of the area, as unobserved in the data, which induces a significant endogeneity bias in the model. To rectify this issue the methodology proceeds in two steps. In the first step, a hazard model is estimated which predicts the probability that is where a hub will come to an area. In the second stage these predicted probabilities are used to find a match for each treated region by finding the untreated region with the greater majority most similar probability of Venture Capital funding founding an accelerator in that year when the treated region is locatedon the common support.

==DataCurrent Work==

===Additional Resources===* A general overview of entrepreneurial ecosystems can be found here: [[Entrepreneurial Ecosystem]].* Yael Hochberg and Fehder (2015), located in dropbox<includeonly>** Use this paper as a guideline on how to conduct the analysis[[Category*US Census Bureau data on employment by MSA: http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_14_5YR_B23027&prodType=table*USPTO utility patents by MSA: http: McNair Projects]]//www.uspto.gov/web/offices/ac/ido/oeip/taf/cls_cbsa/allcbsa_gd.htm<*MSA level trends: http://www.metrotrends.org/includeonly><!-- flush -->data.cf