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Location Attributes and Start-ups in Knowledge-Intensive Business Services

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  • Martin Andersson
  • Karin Hellerstedt

Abstract

This paper examines start-ups in knowledge-intensive business services (KIBS) across Swedish regions by individuals with a formally recognized capacity to produce and develop advanced business services. The empirical analysis focuses on whether their involvement in entrepreneurship may be explained by location attributes. As much as 75 percent of the KIBS founders have prior work experience from business services, suggesting that KIBS start-ups are more frequent in regions where the KIBS sector is already large. Controlling for the stock of potential entrepreneurs and the stock of KIBS firms, it is shown that variables reflecting both supply-side conditions and market size influence KIBS start-up activity. Results are consistent with the hypothesis that KIBS entrepreneurship in a region is stimulated by the simultaneous presence of (i) knowledge resources conducive for the generation and diffusion of knowledge and ideas upon which new firms can be established and (ii) a large market.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 16 (2009)
Issue (Month): 1 ()
Pages: 103-121

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Handle: RePEc:taf:indinn:v:16:y:2009:i:1:p:103-121

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Related research

Keywords: Knowledge-intensive business services; KIBS; spillovers; start-ups; entrepreneurship; market size;

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Cited by:
  1. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012. "R&D strategies and entrepreneurial spawning," Research Policy, Elsevier, vol. 41(1), pages 54-68.
  2. Kent Eliasson & Hans Westlund, 2013. "Attributes influencing self-employment propensity in urban and rural Sweden," The Annals of Regional Science, Springer, vol. 50(2), pages 479-514, April.
  3. Martinsson, Gustav, 2008. "The Impact of Firm Collateral on Knowledge Intensive Consulting Firms," Working Paper Series in Economics and Institutions of Innovation 135, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  4. Baltzopoulos, Apostolos, 2009. "The Firm and the Region as Breeding Grounds for Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 189, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Mercedes Rodriguez & JosÈ Antonio Camacho, 2011. "The Regional distribution of Knowledge-Intensive Business Services in Europe: a spatial approach," ERSA conference papers ersa10p277, European Regional Science Association.
  6. Chee-Yang Fong & Keng-Boon Ooi & Boon-In Tan & Voon-Hsien Lee & Alain Yee-Loong Chong, 2011. "HRM practices and knowledge sharing: an empirical study," International Journal of Manpower, Emerald Group Publishing, vol. 32(5/6), pages 704-723, September.
  7. Fallah, Belal & Partridge, Mark, 2012. "Geography and high-tech employment growth in U.S. counties," MPRA Paper 38294, University Library of Munich, Germany.
  8. Michael Wyrwich, 2011. "Knowledge intensive Entrepreneurship across regions: Makes being a new industry a difference?," ERSA conference papers ersa11p1711, European Regional Science Association.
  9. Dan Rickman & Belal Fallah & Mark Partridge, 2011. "Geographic Determinants of Hi-Tech Employment Growth in U.S. Counties," ERSA conference papers ersa11p518, European Regional Science Association.

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