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The Determinants of Regional Variation in New Firm Formation

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Author Info
Catherine Armington
Zoltan J. Acs

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Abstract

While much of the literature on new firm formation in the 1980s was motivated by high levels of unemployment, much of the focus on new firm start-ups today is motivated by high technology. Using a new database we examine the role of human capital, training and education, and entrepreneurial environment on new firm formation. We find significant differences in new firm formation rates from industrial regions to technologically progressive regions. Variations in firm birth rates are explained by industrial density, population and income growth. These results are consistent with thick labour markets and localized knowledge spillovers. Alors que le chômage constituait le principal moteur de la documentation sur la création d'entreprise dans les années 80, de nos jours c'est plutôt la nouvelle technologie qui en est le moteur. A partir d'une nouvelle base de données, cet article cherche à examiner le rôle du capital humain, de la formation et de l'éducation, et du milieu propice à la création d'entreprise. Il s'avère d'importants écarts dans les taux de création d'entreprise entre les régions industrielles et les régions plus à la pointe de la technologie. La variation du taux de création d'entreprise s'explique par la densité industrielle, la démographie et la croissance du revenu. Ces résultats-là correspondent aux notions de marchés du travail forts et de retombées des connaissances localisées. Während in den achtziger Jahren ein Großteil der Literatur über die Gründung neuer Firmen durch den hohen Grad der Erwerbslosigkeit veranlaßt worden war, verdankt sie heute das Interesse an Firmengründungen hauptsächlich der Hochtechnologie. Mit Hilfe einer neuen Datenbank werden die Einflüsse von Menschenkapital, Ausbildung und Erziehung und einer unternehmerfreundlichen Umwelt auf Firmengründungen untersucht. Es werden signifikante Unterschiede in den Raten neuer Firmengründungen in Industriegebieten und technologisch fortschrittlichen Gebieten festgestellt. Schwankungen in Firmengründungsraten finden ihre Erklärung in Industriedichte, Bevölkerung und Einkommensanstieg. Diese Ergebnisse stimmen mit starken Arbeitsmärkten und örtlich beschränkter Verbreitung von Kenntnisen überein.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 36 (2002)
Issue (Month): 1 (February)
Pages: 33-45
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Handle: RePEc:taf:regstd:v:36:y:2002:i:1:p:33-45

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Related research
Keywords: New Firm Formation; Spillovers; Unemployment; Spatial Variation;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
    Other versions:
  2. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June. [Downloadable!] (restricted)
  3. Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November. [Downloadable!] (restricted)
  4. David Audretsch & Michael Fritsch, 1994. "The Geography of Firm Births in Germany," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 359-365, July. [Downloadable!] (restricted)
  5. Krugman, Paul, 1991. "History and Industry Location: The Case of the Manufacturing Belt," American Economic Review, American Economic Association, vol. 81(2), pages 80-83, May. [Downloadable!] (restricted)
  6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  7. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1994. "R&D Spillovers and Recipient Firm Size," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 336-40, May. [Downloadable!] (restricted)
  8. Peter Nijkamp & Jacques Poot, 1997. "Spatial Perspectives on New Theories of Economic Growth," Tinbergen Institute Discussion Papers 97-056/3, Tinbergen Institute.
  9. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  10. Per Davidsson & Leif Lindmark & Christer Olofsson, 1994. "New Firm Formation and Regional Development in Sweden," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 395-410, July. [Downloadable!] (restricted)
  11. Krugman, Paul, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-74, Spring. [Downloadable!] (restricted)
  12. Paul R. Krugman, 1991. "First Nature, Second Nature, and Metropolitan Location," NBER Working Papers 3740, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-67, March. [Downloadable!] (restricted)
  14. Evans, David & Jovanovic, Boyan, 1987. "Entrepreneurial Choice and Liquidity Constraints," Working Papers 87-31, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  15. Bernard Guesnier, 1994. "Regional Variations in New Firm Formation in France," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 347-358, July. [Downloadable!] (restricted)
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