Do entrepreneur-focused facility incentives create economic impacts? Evidence from Indiana
Purpose: As a component of a benefit-cost analysis into the efficacy of publicly funded facility incentives, the purpose of this paper is to examine the county-wide impact of business incubators, makerspaces and co-working spaces on employment, proprietor’s employment and the average wage per job. The period under analysis is 1971 through 2015 across Indiana’s 92 counties. Design/methodology/approach: Using a unique data set on facility incentives in Indiana, a spatial panel model, which includes a unique identification strategy to account for underlying conditions identified as a source of incubator success in earlier studies, is developed. Findings: This study finds no statistically significant impact of these facilities on total employment or average wage per job during this period. There is a statistically meaningful impact of co-working spaces on proprietor’s employment, but the effect is an economically insignificant one-time increase of 2.3 jobs in the typical county, which can be interpreted as shifting employment from traditional employment to proprietorship employment. Originality/value: This is the first empirical estimate of the contribution of modern facility incentives on measures of local economic activity.
Year of publication: |
2018
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Authors: | Hicks, Michael ; Faulk, Dagney G. |
Published in: |
Journal of Entrepreneurship and Public Policy. - Emerald, ISSN 2045-2101, ZDB-ID 2650545-9. - Vol. 7.2018, 3 (11.07.), p. 222-234
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Publisher: |
Emerald |
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