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The localisation of entrepreneurship capital: Evidence from Germany

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  • David B. Audretsch
  • Max Keilbach

Abstract

. Whereas initially physical capital and later, knowledge capital were viewed as crucial for growth, more recently a very different factor, entrepreneurship capital, has emerged as a driving force of economic growth. In this paper, we define a region's capacity to create new firms start‐ups as the region's entrepreneurship capital. We then investigate the local embeddedness of this variable and which variables have an impact on this variable. Using data for Germany, we find that knowledge‐based entrepreneurship capital is driven by local levels of knowledge creation and the acceptance of new ideas, indicating that local knowledge flows play an important role. Low‐tech entrepreneurship capital is rather increased by regional unemployment and driven by direct incentives such as subsidies. All three measures are locally clustered, indicating that indeed, entrepreneurship capital is a phenomenon that is driven by local culture, and is therefore locally bounded. Abstract. Mientras que inicialmente el capital físico, y posteriormente el capital conocimiento, fue considerado crucial para el crecimiento, más recientemente un factor muy diferente, el capital empresarial de espíritu emprendedor (entrepreneurship capital), ha surgido como una fuerza impulsora de crecimiento económico. En este artículo, definimos como capital empresarial emprendedor la capacidad de una región para originar la puesta en marcha de nuevas empresas. A continuación investigamos el arraigo local de esta variable y las variables que tienen un impacto sobre esta variable. Usando datos de Alemania, hallamos que el capital empresarial emprendedor basado en el conocimiento está motivado por niveles locales de creación de conocimiento y la aceptación de nuevas ideas, indicando que los flujos de conocimiento local juegan un papel importante. El capital empresarial emprendedor basado en bajas tecnologías aumenta con el desempleo regional y está motivado por incentivos directos como subsidios. Las tres variables están agrupadas localmente (locally clustered), indicando que sin duda el capital empresarial emprendedor es un fenómeno motivado por la cultura local, y por tanto atribuible a una localidad.

Suggested Citation

  • David B. Audretsch & Max Keilbach, 2007. "The localisation of entrepreneurship capital: Evidence from Germany," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 351-365, August.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:3:p:351-365
    DOI: 10.1111/j.1435-5957.2007.00131.x
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    References listed on IDEAS

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    1. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    2. Zoltan J Acs & Catherine Armington, 2003. "The Geographic Concentration of New Firm Formation and Human Capital: Evidence from the Cities," Working Papers 03-05, Center for Economic Studies, U.S. Census Bureau.
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    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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