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The Geography of New Firm Formation: Evidence from Independent Start-ups and New Subsidiaries in the Netherlands

Author

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  • André van Stel
  • Niels Bosma
  • Kashifa Suddle

Abstract

This paper investigates to what extent determinants of the rate of independent startups and the rate of new subsidiaries are different. Using a regional data base for the Netherlands over the period 1988-2002, we investigate the impact of two types of agglomeration effects, localisation and urbanisation, while controlling for a range of economic variables. We find urbanisation economies to be particularly important for the creation of new subsidiaries while localisation economies are more important for the creation of independent new ventures. Finally, the effect of agglomeration variables is found to be stronger for manufacturing industries compared to services industries.

Suggested Citation

  • André van Stel & Niels Bosma & Kashifa Suddle, 2006. "The Geography of New Firm Formation: Evidence from Independent Start-ups and New Subsidiaries in the Netherlands," Scales Research Reports H200615, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h200615
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    Cited by:

    1. Erik Stam & Jan Lambooy, 2012. "Entrepreneurship, Knowledge, Space, and Place: Evolutionary Economic Geography meets Austrian Economics," Advances in Austrian Economics, in: The Spatial Market Process, pages 81-103, Emerald Group Publishing Limited.
    2. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 495-518, June.
    3. Haroon, Maryiam & Chaudhry, Azam, 2014. "Where do new firms locate? The effects of agglomeration on the formation and scale of operations of new firms in Punjab," Economics Discussion Papers 2014-21, Kiel Institute for the World Economy (IfW Kiel).
    4. Azam Chaudhry & Marjan Nasir & Maryiam Haroon, 2012. "The Birth of Exporters: Entry and Scale of Firms in Punjab’s Export Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 191-212, September.
    5. Brixy, Udo & Sternberg, Rolf & Stüber, Heiko, 2008. "From potential to real entrepreneurship," IAB-Discussion Paper 200832, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Otto Raspe & Frank Van Oort, 2014. "Entrepreneurial opportunity in innovative urban environments," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 2, pages 29-50, Edward Elgar Publishing.
    7. Sierdjan Koster, 2011. "Individual foundings and organizational foundings: their effect on employment growth in The Netherlands," Small Business Economics, Springer, vol. 36(4), pages 485-501, May.
    8. Maryiam Haroon, 2013. "The Effects of Agglomeration on the Formation and Scale of Operation of New Firms," CREB Working papers 3-2013, Centre for Research in Economics and Business, The Lahore School of Economics, revised 2013.
    9. Andrew Ross, 2011. "Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland," ERSA conference papers ersa11p848, European Regional Science Association.

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