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Start-up complexity and the thickness of regional input markets

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  • Dohse, Dirk
  • Vaona, Andrea

Abstract

Although there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others.

Suggested Citation

  • Dohse, Dirk & Vaona, Andrea, 2013. "Start-up complexity and the thickness of regional input markets," Kiel Working Papers 1842, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1842
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    Cited by:

    1. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    2. Jürgen Janger & Matthias Firgo & Kathrin Hofmann & Agnes Kügler & Anna Strauss & Gerhard Streicher & Hans Pechar, 2017. "Wirtschaftliche und gesellschaftliche Effekte von Universitäten," WIFO Studies, WIFO, number 60794, April.
    3. Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2015. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness, and Innovation," Economic Geography, Clark University, vol. 91(4), pages 475-508, October.
    4. Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "What induces firms to license foreign technologies? International survey evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 799-814, October.
    5. Alexandra Tsvetkova & Mark Partridge, 2021. "Knowledge-based service economy and firm entry: an alternative to the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 56(2), pages 637-657, February.
    6. Jens Horbach, 2020. "The Importance of regional Spill-over Effects for Eco-Innovations in German Start-ups," SEEDS Working Papers 1620, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2020.

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    More about this item

    Keywords

    Entrepreneurship; Start-up complexity; Thick markets; Regional analysis;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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