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The Hero Company Theory, based on the work of economist Steven Klepper (1949 – 2013), who studied the phenomenon of economic agglomeration in Detroit during the automobile boom and Silicon Valley during the semiconductor boom.[1] Klepper said that business ecosystems are best developed through the impact of "Hero Companies" which he described as high-growth businesses that achieve a substantial and sustainable impact and incubate talent, ideas, and most importantly, spinoffs. This theory posits that the spinoff process is the most effective method to spur dynamic hubs of growth, innovation, and wealth generation.[2] This theory was originally developed in reference to the automobile industry in the U.S. city of Detroit and then applied to the technology industry in Silicon Valley.
^Agarwal, Rajshree; Buenstorf, Guido; Cohen, Wesley M.; Malerba, Franco (2015). "The legacy of Steven Klepper: Industry evolution, entrepreneurship, and geography". Industrial and Corporate Change. 24 (4): 739–753. doi:10.1093/icc/dtv030.
^Paik, Michael J. Hero Companies: Building the Next Silicon Valley.
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