The Localization of Entrepreneurship Capital - Evidence from Germany
AbstractWhereas initially physical capital and later, knowledge capital were viewed as crucial for growth, more recently a very different factor, entrepreneurship capital, has emerged as a driving force of economic growth. In this paper, we define a region's capacity to create new firms start-ups as the region's entrepreneurship capital. We then investigate the local embeddedness of this variable and which variables have an impact on this variable. Using data for Germany, we find that knowledge-based entrepreneurship capital is driven by local levels of knowledge creation and the acceptance of new ideas, indicating that local knowledge flows play an important role. Low-tech entrepreneurship capital is rather increased by regional unemployment and driven by direct incentives such as subsidies. All three measures are locally clustered, indicating that indeed, entrepreneurship capital is a phenomenon that is driven by local culture, and is therefore locally bounded.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-029.
Date of creation: 02 Jul 2007
Date of revision:
Entrepreneurship capital; Local Clusters; Knowledge Spillovers; Spatial Econometrics;
Other versions of this item:
- David B. Audretsch & Max Keilbach, 2007. "The localisation of entrepreneurship capital: Evidence from Germany," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 351-365, 08.
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-13 (All new papers)
- NEP-CFN-2007-07-13 (Corporate Finance)
- NEP-EEC-2007-07-13 (European Economics)
- NEP-ENT-2007-07-13 (Entrepreneurship)
- NEP-GEO-2007-07-13 (Economic Geography)
- NEP-HRM-2007-07-13 (Human Capital & Human Resource Management)
- NEP-INO-2007-07-13 (Innovation)
- NEP-KNM-2007-07-13 (Knowledge Management & Knowledge Economy)
- NEP-SOC-2007-07-13 (Social Norms & Social Capital)
- NEP-URE-2007-07-13 (Urban & Real Estate Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dick Johannes & Hussinger Katrin & Blumberg Boris & Hagedoorn John, 2011.
"Is Success Hereditary? Evidence on the Performance of Spawned Ventures,"
034, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Johannes Dick & Katrin Hussinger & Boris Blumberg & John Hagedoorn, 2013. "Is success hereditary? Evidence on the performance of spawned ventures," Small Business Economics, Springer, Springer, vol. 40(4), pages 911-931, May.
- Michael Schwartz & Christoph Hornych, 2008. "Technologie- und Gründerzentren im Lichte von Diversifizierung versus Spezialisierung," IWH Discussion Papers, Halle Institute for Economic Research 7, Halle Institute for Economic Research.
- Cumming, Douglas & Li, Dan, 2013. "Public policy, entrepreneurship, and venture capital in the United States," Journal of Corporate Finance, Elsevier, Elsevier, vol. 23(C), pages 345-367.
- Sven-Olov Daunfeldt & Niklas Elert & Niklas Rudholm, 2013. "Start-ups and firm in-migration: evidence from the Swedish wholesale industry," The Annals of Regional Science, Springer, Springer, vol. 51(2), pages 479-494, October.
- H. Wolf & Claus Michelsen & Michael Schwartz, 2010.
"Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups,"
IWH Discussion Papers, Halle Institute for Economic Research
25, Halle Institute for Economic Research.
- Claus Michelsen & Harald Wolf & Michael Schwartz, 2013. "Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-Winning Nascent Entrepreneurs to Real Start-Ups," European Planning Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 21(11), pages 1708-1734, November.
- T�lio A. Cravo, 2010. "SMEs and economic growth in the Brazilian micro-regions," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 711-734, November.
- Pinto, Hugo & Cruz, Ana & Gonçalves, Ana, 2011. "Hard Working Ant: An Eco-Tourism Spin-Off Creation Tale," Spatial and Organizational Dynamics Discussion Papers 2011-11, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.
- Alessandra Colombelli & Francesco Quatraro, 2013. "New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions," Working Papers hal-00858989, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche).
If references are entirely missing, you can add them using this form.