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The effect of new business formation on regional development - Empirical evidence, interpretation, and avenues for further research

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  • Michael Fritsch

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

This paper reviews the current state of knowledge about the effect of new business formation on regional development. After a brief sketch of the origins of research on this issue, the main results of different lines of inquiry are discussed. Main issues are the development of start-up cohorts, the relative magnitude of direct and indirect effects, and results by type of entry and by industry, as well as differences in the effects that have been found for different types of regions. After interpreting the results based on a common framework, I put forward a number of important questions for further research and draw some conclusions for entrepreneurship policy.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-006.

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Date of creation: 02 Feb 2011
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Handle: RePEc:jrp:jrpwrp:2011-006

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Keywords: Entrepreneurship; new business formation; employment; regional development;

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References

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Citations

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Cited by:
  1. Michael Fritsch & Alexandra Schroeter, 2011. "Does Quality make a Difference? Employment Effects of High- and Low-Quality Start-ups," ERSA conference papers ersa10p1400, European Regional Science Association.
  2. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
  3. Lööf, Hans & Nabavi, Pardis, 2013. "Survival, Productivity and Growth of New Ventures across Locations," Working Paper Series in Economics and Institutions of Innovation 308, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  4. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
  5. Michael Fritsch & Alexander S. Kritikos & Alina Rusakova, 2012. "Who Starts a Business and Who Is Self-Employed in Germany," Discussion Papers of DIW Berlin 1184, DIW Berlin, German Institute for Economic Research.
  6. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2010. "R&D Strategies and Entrepreneurial Spawning," Working Paper Series in Economics and Institutions of Innovation 228, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  7. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  8. Peter Zwan & Ingrid Verheul & A. Thurik, 2012. "The entrepreneurial ladder, gender, and regional development," Small Business Economics, Springer, vol. 39(3), pages 627-643, October.

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