Journal Article

The Regional Impacts of Digitalization of Work on Entrepreneurship in the United States


  • Fossen
  • F.M.
  • McLemore
  • T.
  • Sorgner
  • A.
Publication Date

We analyze the regional differences in the exposure of different types of entrepreneurs to the digitalization of work in the United States. We use different measures of digitalization that reflect its destructive and transformative impacts on occupations. Based on the occupational structure of regional labor markets as observed in the American Community Survey for 2017, we provide evidence of pronounced regional differences in the impact of digitalization on incorporated and unincorporated entrepreneurship. In general, our findings suggest that new digital technologies, such as AI and machine learning, are important elements of regional digital entrepreneurial ecosystems, as they have various impacts on entrepreneurs and their businesses. This could lead to the emergence of significant regional disparities in the level and type of entrepreneurial activities. Entrepreneurs in urban areas are most likely to benefit from advances in AI, but heterogeneity between cities is large.

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JEL Classification
L26, J22, J23, O33

Key Words

  • artificial intelligence
  • digital entrepreneurial ecosystems
  • Digital transformation
  • incorporated and unincorporated entrepreneurship
  • Machine Learning
  • regional differences