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Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation

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Author Info
Otto, Anne () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
Fornahl, Dirk

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Abstract

"This paper explores how different levels of regional concentration and specialisation affect the long-term growth of young firms. The sample consists of knowledge-intensive and non-knowledge-intensive western German manufacturing firms which were set-up in 1992 and managed to survive 11 years. The paper examines the joint effect of regional, industrial and firm-specific determinants. The analysis of the concentration and specialisation factors takes into account the industrial and technological dimensions and the regional level of human capital. With regard to the concentration measures being located in an industrial or technological agglomeration slightly reduces the growth rates of start-ups. The same negative, but stronger, effect can be observed for competition measures. Furthermore, our results suggest that startups exhibit higher growth rates the higher specialised the region is in which they are located." (author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200813.

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Length: 39 pages
Date of creation: 05 Mar 2008
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Handle: RePEc:iab:iabdpa:200813

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Keywords: Unternehmensgründung; verarbeitendes Gewerbe; Unternehmensentwicklung - Determinanten; Standortfaktoren; regionale Faktoren; Humankapital; Wettbewerbsfähigkeit; Wirtschaftszweige; regionales Cluster; Westdeutschland; Bundesrepublik Deutschland;

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Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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Cited by:
(explanations, 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. Andreas Koch & Jochen Spaeth, 2009. "New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents," IAW Discussion Papers 50, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
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