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The Hubs Research Project is a full-length academic paper analyzing the effectiveness of "hubs", a component of the entrepreneurship ecosystem, in the advancement and growth of entrepreneurial success in a metropolitan area.
This research will primarily be focused on large and mid-sized Metropolitan Statistical Areas (MSAs), as that is where the greater majority of Venture Capital funding is located.==Abstract==
=Data===Primary Data Set==The Entrepreneurship hubs have recently emerged as a stable institutional form and as popular and important components of entrepreneurship ecosystems. Hubs data setare membership-based co-working flex-spaces with specialized services and resources for nascent start-up firms. Examples of hubs include the Capital Factory in Austin, Texas, 1871 in Chicago, Illinois, and 1776 in Philadelphia, Pennsylvania. Each of these hubs has around 50, from SDC Platinum000sqft of workspace for almost a thousand members working at hundreds of start-ups. Each also includes an accelerator program, has been constructed daily events, classes and meetings related to entrepreneurship, 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 server:firm’s human resources can be quickly and efficiently absorbed into another venture. We might therefore expect that the introduction of a hub will lead to a greater degree of entrepreneurial activity in a region. Data files are This paper will use a difference-in-difference approach to estimate the effect of the introduction of a hub on seed and early stage venture capital investment in 128an area.42The empirical methodology of the paper is closely aligned with the methodology in Fedher and Hochberg (2015).44The decision of a hub to locate itself in an area is expected to be highly correlated with existing characteristics of the area, unobserved in the data, which induces a significant endogeneity bias in the model.181/bulk/Hubs All files are To rectify this issue the methodology proceeds in 128two steps.42In the first step, a hazard model is estimated which predicts the probability that a hub will come to an area.44In the second stage these predicted probabilities are used to find a match for each treated region by finding the untreated region with the most similar probability of founding an accelerator in that year when the treated region is on the common support.182/bulk/Projects/Hubs psql Hubs
The data set includes all United States Venture Capital transactions (moneytree) from the twenty-five year period of 1990 through 2015. Data has been aggregated at the portfolio company, fund, and round level. It will be analyzed at the combined MSA level. We will be looking at in terms of number of companies funded in number of funds active, and flow of investment in a given MSA.==Current Work==
===Raw Data===Currently there are '''3''' major tasks being performed (list to be updated):#Funds'''Creation of VC data table''': '''UPDATE: fund name, first investment date, last investment date, fund closing date, address, known investment, average investment, number of companies invested, MSA, MSA code.Complete''' (see completed work section below)#Rounds'''Creation of Hubs Dataset''': round date, company name, state, round number, stage 1, stage 2, stage 3#Combined Rounds'''UPDATE: company name, round date, disclosed amount, investorSee current work in progress for updates''' We will collect key variables for potential Hubs.#Portfolio Companies'''Hazard Rate Model''': company name, first investment, last investment, MSA, MSA code, address, state, date founded, known funding, industry#MSA list'''UPDATE: MSA(7/11) Spoke to Xun Tang, MSA codeeconometrics professor in Rice's Economics Department, CMSAand now looking for appropriate proportional rate hazard models with time varying covariates.''' In order to perform our diff-diff model, CMSA code#Industry list: changes 6 industry categories we need to match MSAs. In order to 4— ICTdo so, Life Sciences, Semiconductors, Otherwe will be using a hazard rate model to produce a probability that a MSA gets a Hub and compare MSAs that do and don't have hubs with similar probabilities.
===Process===
==Supplementary Data Sets==
*Number of STEM graduate student, by university and year(2005 to 2014).
E:\McNair\Projects\Hubs\STEM grads for upload v2.xls
*University R&D spending, by university and year(2004 to 2014).
E:\McNair\Projects\Hubs\NSF spending for upload.xls
*Income per capital, by MSA and year(2000 to 2012)
E:\McNair\Projects\Hubs\Income per capita upload.xls
The Impact of Entrepreneurship Hubs on Urban Venture Capital Investment (view source)
Revision as of 10:56, 18 March 2019
, 10:56, 18 March 2019no edit summary
{{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
}}
=AbstractHubs Pages=*This page [[Hubs (Academic Paper)]] contains only the abstract and some useful refs*The main [[Hubs]] page is the place to go!*There is also [[Old Completed Work on Hubs]]*For a high-level overview of the variables for the scorecard go to [[Hubs Scorecard (Academic Paper)]]. This summarizes:**Current work in progress for building the Hubs scorecard: [[Hubs: Hubs Scorecard]]**Tracking of work in progress for the scorecard [[Hubs: Hubs Data Building]]
===General Overview===
==Resources==
===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
