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

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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.

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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200615.

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Length: 38 pages
Date of creation: 02 Oct 2006
Date of revision:
Handle: RePEc:eim:papers:h200615

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Cited by:
  1. 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.
  2. E. Stam & J.G. Lambooy, 2012. "Entrepreneurship, Knowledge, Space, and Place: Evolutionary Economic Geography meets Austrian Economics," Working Papers 12-11, Utrecht School of Economics.
  3. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
  4. Andrew Ross, 2011. "Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland," ERSA conference papers ersa11p848, European Regional Science Association.
  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. Koen Frenken & Elena Cefis & Erik Stam, 2011. "Industrial dynamics and economic geography: a survey," Eindhoven Center for Innovation Studies (ECIS) working paper series 11-07, Eindhoven Center for Innovation Studies (ECIS).
  7. 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.
  8. 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.

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