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Regional knowledge production and entrepreneurial firm creation: Spatial Dynamic Analyses

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  • Lee, In Hyeock
  • Hong, Eunsuk
  • Sun, Laixiang

Abstract

This study assesses whether and to what extent new knowledge available in a region and its surrounding regions induces and facilitates new firm creation, an important topic that is largely left untested in the literature. Using a full population firm-level dataset of 44,434 newly created entrepreneurial firms in the manufacturing sector in 234 regions of South Korea between 2000 and 2004, its econometric estimations indicate a positive externality effect of new knowledge production on activities of new firm creation within and across the regional boundaries, with the intra-regional effect being stronger than the inter-regional one. The estimations also show that both the intra- and inter-regional effects are stronger in high-tech industries than in low-tech industries.

Suggested Citation

  • Lee, In Hyeock & Hong, Eunsuk & Sun, Laixiang, 2013. "Regional knowledge production and entrepreneurial firm creation: Spatial Dynamic Analyses," Journal of Business Research, Elsevier, vol. 66(10), pages 2106-2115.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:2106-2115
    DOI: 10.1016/j.jbusres.2013.02.037
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