New venture creation is usually regarded as an ‘urban event’, i.e. such ventures are mostly located in cities and therefore increase the economic disparities between urban and rural regions due to their mostly positive economic effects on their spatial environment. This is not necessarily the case for new ventures that are primarily based on digital products and/or digital product development. In a new paper in the renowned Journal of Business Venturing Insights, an interdisciplinary team from the fields of economic geography (Rolf Sternberg) and economics (including ZEW in Mannheim and TU Munich) analyses the spatial implications of the young phenomenon of ‘digital entrepreneurship’ in Germany. Using detailed microdata, the authors analyse the regional determinants of digital entrepreneurship. The central finding: in order for rural areas to benefit from the continuously increasing number of digital new ventures, they need both a good digital infrastructure and qualified people who are willing and able to use this infrastructure to set up digital ventures. Where these conditions are met, digital entrepreneurship can also have a positive impact on regional development in rural regions.
Bergholz, C.; Füner, L.; Lubczyk, M.; Sternberg, R.; Bersch, J. (2024): Infrastructure required, skill needed: Digital entrepreneurship in rural and urban areas. Journal of Business Venturing Insights 22, e004288. DOI: 10.1016/j.jbvi.2024.e00488
