The purpose of this study is to test the effects of innovative entrepreneurship on urban economic performance. This paper develops a theoretical model using an urban production function and agglomeration economy model framework. The urban production model is an expansion of a neoclassical production function that presents urban output as a function of labor and capital and also as a function of agglomerative factors and technology. These agglomerative factors present characteristics that promote innovation within urban areas.

Two empirical models were created using , the first of which tests the factors that influence the presence of small firms based on characteristics of metropolitan areas that promote innovation. The second empirical was developed to determine the effects the presence of small firms have on metropolitan economic performance. In a sequential framework, the findings of this study present evidence that innovation and dynamic agglomeration contribute to the viability of urban areas.


Burnell, James



Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis



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