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The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation

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  • Young Choi

    ()

  • Phillip Phan

    ()

Abstract

This study attempts to reveal how macroeconomic and technology policies that encompass the opportunity and individual drivers of entrepreneurship explain the dynamics of new firm formation in a country. To do so we rely on the Schumpeterian, industrial organization, and labor economics traditions of entrepreneurship, and performed an exploratory test with longitudinal U.S. data from 1968 to 1993. The results of this study suggest that R&D investments, patents, economic concentration, pro-competition policy, and labor mobility are important areas in which government policy can influence the intensity of new firm formation. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11187-005-5989-2
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 26 (2006)
Issue (Month): 5 (06)
Pages: 493-503

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Handle: RePEc:kap:sbusec:v:26:y:2006:i:5:p:493-503

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: entrepreneurial policy; government; new firm formation; L50 (Regulation and Industrial Policy-General); M13 (Entrepreneurship) ; M20 (Business Economics-General);

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Cited by:
  1. Roberta Piergiovanni & Martin Carree & Enrico Santarelli, 2012. "Creative industries, new business formation, and regional economic growth," Small Business Economics, Springer, vol. 39(3), pages 539-560, October.
  2. Niels Bosma & Sander Wennekers & F. Stam, 2013. "Institutions and the allocation of entrepreneurship across new and established organizations," Scales Research Reports H201213, EIM Business and Policy Research.
  3. Niels Bosma & Sander Wennekers & F. Stam, 2010. "Intrapreneurship - An international study," Scales Research Reports H201005, EIM Business and Policy Research.
  4. Robert M. Feinberg, 2009. "Foreign Competition and Small-Firm Entry in US Manufacturing," Working Papers 2009-04, American University, Department of Economics.
  5. Lee, Seung-Hyun & Yamakawa, Yasuhiro & Peng, Mike W. & Barney, Jay B., 2011. "How do bankruptcy laws affect entrepreneurship development around the world?," Journal of Business Venturing, Elsevier, vol. 26(5), pages 505-520, September.
  6. James Derbyshire & Garry Haywood, 2007. "Schumpeterian 'Creative Destruction' and Strengthening the Business Stock Through Firm Formation," Research Papers 200739, University of Liverpool Management School.
  7. N.S. Bosma & E. Stam & S. Wennekers, 2012. "Entrepreneurial Employee Activity: A Large Scale International Study," Working Papers 12-12, Utrecht School of Economics.
  8. David B. Audretsch & Dirk Christian Dohse & Annekatrin Niebuhr, 2014. "Regional Unemployment Structure and New Firm Formation," Kiel Working Papers 1924, Kiel Institute for the World Economy.

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