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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
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 66 (2013)
    Issue (Month): 10 ()
    Pages: 2106-2115

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    Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:2106-2115

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Regional innovation capacity; Entrepreneurship; Firm creation; Knowledge spillovers; System GMM;

    References

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    Cited by:
    1. Charters, Steve & Spielmann, Nathalie, 2014. "Characteristics of strong territorial brands: The case of champagne," Journal of Business Research, Elsevier, vol. 67(7), pages 1461-1467.

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