Which social and urban factors are conducive to the entrepreneurial society?

In this paper, the influence of urbanization and diversity on innovative entrepreneurship is analysed. According to Richard Florida's central thesis from "The Rise of the Creative Class" (2002) and "Cities and the Creative Class" (2005), urbanization and diversity are the foundation of innovative entrepreneurship. The latter boosts economic growth. Over the last decade, the positive influence of entrepreneurship, and specifically innovative entrepreneurship, is demonstrated. This paper aims to explain the variance in innovative entrepreneurship between countries using multiple regression analysis. The relationship between innovative entrepreneurship, urbanization and diversity is investigated. Innovative entrepreneurships is measured using the Acs and Szerb (2010) Aspiration index. This paper confirms the influence of urbanization, but finds no statistical evidence concerning diversity or an interaction effect.