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Cohesion Policy:Methodology And Indicators Towards Common Approach Author info | Abstract | Publisher info | Download info | Related research | Statistics Anne Otto () (Institute of Employment Research, Saarbrücken, Germany)
Dirk Fornahl () (BAW Institute for Regional Economics Research,Bremen, Germany)
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This paper explores how different levels of regional concentration and specialisation affect the long-term growth of young firms. The sample consists of knowledge-intensive and non-knowledge-intensive West German manufacturing firms which were established in 1992 and managed to survive for 11 years. The paper examines the combined effect of regional, industrial and firm-specific determinants. The analysis of the concentration and specialisation factors takes into account the industrial and technological dimensions and the regional availability of human capital. With regard to the measures of concentration, a location in an industrial or technological agglomeration slightly reduces the growth rate of start-ups. The same negative, but stronger, effect can be observed for measures of competition. Furthermore, our results suggest that start-ups exhibit higher growth rates, the more highly specialised the region is in which they are located.
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Article provided by Romanian Regional Science Association in its journal Romanian Journal of Regional Science .
Volume (Year): 3 (2009)
Issue (Month): 1 (JUNE)
Pages: 1-35
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Keywords: firm growth ; regional concentration ; regional specialisation and diversification ; GLS model ; Find related papers by JEL classification: R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography) O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
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