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Measuring business dynamics among incumbent firms in The Netherlands

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Author Info
André van Stel
Mickey Folkeringa
Kashifa Suddle
Sita Tan

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Abstract

Business dynamics in an industry is generally seen as an important indicator of the industry's level of competitiveness and economic performance. Two types of business dynamics may be distinguished: business dynamics reflecting competition by new-firm entries and business dynamics reflecting competition among incumbent firms. A growing literature pays attention to the important role of the former type of business dynamics (the starting up of new firms) for achieving economic growth. However, the latter type of business dynamics tends to be overlooked in this type of literature. In part this is due to the large requirements, both in terms of data and in terms of methodology, of measuring competition among incumbent firms. A sophisticated indicator for measuring the extent of business dynamics among incumbent firms in an industry is the mobility index. In the current paper we compute mobility indices for 16 industries -covering the whole private sector except for the primary sectors of economy- in the Netherlands over the period 2000-2006, and compare the values of the mobility indices across the sectors.

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Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200816.

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Length: 27 pages
Date of creation: 01 Aug 2009
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Handle: RePEc:eim:papers:h200816

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  2. Stonebraker, Robert J, 1979. "Turnover and Mobility among the 100 Largest Firms: An Update," American Economic Review, American Economic Association, vol. 69(5), pages 968-73, December. [Downloadable!] (restricted)
  3. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December. [Downloadable!] (restricted)
  4. Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Papers on Entrepreneurship, Growth and Public Policy 2004-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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  5. André van Stel & Kashifa Suddle, 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," Scales Research Reports H200503, EIM Business and Policy Research. [Downloadable!]
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  6. Baldwin, John R & Gorecki, Paul K, 1994. "Concentration and Mobility Statistics in Canada's Manufacturing Sector," Journal of Industrial Economics, Blackwell Publishing, vol. 42(1), pages 93-103, March. [Downloadable!] (restricted)
  7. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January. [Downloadable!] (restricted)
  8. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  9. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 961-975, January. [Downloadable!] (restricted)
  10. Dunne, T. & Roberts, M.J. & Samuelson L., 1988. "Plant Turnover And Gross Employment Flows In The U.S. Manufacturing Sector," Papers 9-87-7, Pennsylvania State - Department of Economics.
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  11. Uwe Cantner & Jens J. Krüger, 2004. "Geroski's Stylized Facts and Mobility of Large German Manufacturing Firms," Review of Industrial Organization, Springer, vol. 24(3), pages 267-283, 05. [Downloadable!]
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  12. David Audretsch & Roy Thurik, 1997. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute. [Downloadable!]
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