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New-Firm Start-ups in Italy

Author

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  • Audretsch, David B
  • Vivarelli, Marco

Abstract

This paper applies a modified version of the `income choice' model to explain variations in new-firm formation across Italian provinces over the period 1985-8. Based on a panel data of start-up activity in 78 Italian provinces and using two different databases, we find support for the overall theory of income choice where individuals choose between earning wages from an incumbent enterprise or else profits from starting a new firm. In particular, the evidence suggests that labour market conditions such as wages and the relative impact of labour dislocation, profits and environmental factors such as the degree to which entrepreneurial networks already exist, shape the degree to which new firms are started.

Suggested Citation

  • Audretsch, David B & Vivarelli, Marco, 1993. "New-Firm Start-ups in Italy," CEPR Discussion Papers 864, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:864
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    Citations

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    Cited by:

    1. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2009. "How do young innovative companies innovate?," Jena Economics Research Papers 2009-055, Friedrich-Schiller-University Jena.
    2. Liargovas, Panagiotis & Daskalopoulou, Irene, 2011. "Capital allocation in the Greek regions," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 866-888.
    3. Dirk Engel & Andreas Fier, 2001. "Does R&D Infrastructure Attract High-Tech Start-Ups?," Advances in Spatial Science, in: Manfred M. Fischer & Josef Fröhlich (ed.), Knowledge, Complexity and Innovation Systems, chapter 19, pages 402-421, Springer.
    4. Ewert, Ralf & Szczesny, Andrea, 2001. "Countdown for the New Basle Capital Accord: Are German banks ready for the internal ratings-based approach?," CFS Working Paper Series 2001/05, Center for Financial Studies (CFS).
    5. Lutz Bellmann & Dietmar Harhoff & Norbert Schulz, 1997. "Zur Analyse von Gründungen und Schließungen auf Grundlage der Beschäftigtenstatistik (only available in German)," CIG Working Papers FS IV 97-46, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

    More about this item

    Keywords

    Entry; Income Choice; New Firms; Regional Development; Self-Employment;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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