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The persistence of regional new business formation-activity over time: assessing the potential of policy promotion programs

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  • Fritsch, Michael
  • Mueller, Pamela

Abstract

We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather pathdependent so that changes are relatively small. The main factors determining the level of regional start-ups are innovation and entrepreneurship. These factors also seem to be responsible for changes in the level of regional new business formation. In addition, unemployment plays a role. Steering innovation and creating an entrepreneurial atmosphere could be an appropriate starting point for policy measures that try to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run. -- Wir analysieren regionale Unterschiede des Niveaus von Gründungsaktivitäten und dessen Entwicklung. Die regionalen Gründungsraten weisen eine ausgeprägte Streuung auf. Dabei ist eine deutliche Pfadabhängigkeit der Gründungsaktivitäten feststellbar, so dass Änderungen relativ gering ausfallen. Die wesentlichen Bestimmungsgründe für das Niveau der Gründungsaktivitäten sind Innovation und Unternehmertum. Diese Faktoren spielen auch für Veränderungen der regionalen Gründungsaktivitäten eine Rolle. Zusätzlich hat hier auch das Niveau der regionalen Arbeitslosigkeit einen Einfluss. Die Stimulierung von Innovationsaktivitäten und von Entrepreneurship stellen geeignete Ansatzpunkte für eine Politik dar, die auf eine Steigerung der Gründungsaktivitäten abzielt. Unser empirischer Befund weist allerdings darauf hin, dass ein wesentlicher Effekt solcher Maßnahmen erst längerfristig erwartet werden kann.

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Bibliographic Info

Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2005,01.

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Date of creation: 2005
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Handle: RePEc:zbw:tufwps:200501

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Keywords: New businesses; entrepreneurship; growth regimes; time lags; Regionalentwicklung; Unternehmensgründungen; Entrepreneurship; Wachstumsregime; Time Lags;

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References

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  1. Isabel Grilo & Roy Thurik, 2004. "Determinants of entrepreneurship in Europe," Papers on Entrepreneurship, Growth and Public Policy 2004-30, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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  12. Todtling, Franz & Trippl, Michaela, 2005. "One size fits all?: Towards a differentiated regional innovation policy approach," Research Policy, Elsevier, vol. 34(8), pages 1203-1219, October.
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  14. Michael Fritsch & Pamela Mueller, 2004. "Regional Growth Regimes Revisited - The Case of West Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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Citations

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Cited by:
  1. repec:ese:iserwp:2011-26 is not listed on IDEAS
  2. Andersson, Martin & Braunerhjelm, Pontus & Thulin, Per, 2011. "Creative Destruction and Productivity – Entrepreneurship by type, sector and sequence," Working Papers 2011:8, Swedish Entrepreneurship Forum.
  3. Michael Fritsch & Pamela Mueller, 2008. "The effect of new business formation on regional development over time: the case of Germany," Small Business Economics, Springer, vol. 30(1), pages 15-29, January.
  4. Block, Joern & Kohn, Karsten, 2011. "Sozialpolitische Ziele der Gründungsförderung am Beispiel von Gründungen aus der Arbeitslosigkeit
    [Social policy as a motivation for start-up subsidies: supporting start-ups out of unemployment]    ," MPRA Paper 30775, University Library of Munich, Germany.
  5. Koster, Sierdjan & Karlsson, Charlie, 2009. "New Firm Formation and Economic Development in a Globalizing Economy," Working Paper Series in Economics and Institutions of Innovation 167, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  6. Congregado, Emilio & Golpe, Antonio A. & Parker, Simon C., 2009. "The Dynamics of Entrepreneurship: Hysteresis, Business Cycles and Government Policy," IZA Discussion Papers 4093, Institute for the Study of Labor (IZA).
  7. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925-2005," Jena Economic Research Papers 2012-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  8. 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 25, Halle Institute for Economic Research.
  9. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISES - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  10. Sierdjan Koster, 2011. "Individual foundings and organizational foundings: their effect on employment growth in The Netherlands," Small Business Economics, Springer, vol. 36(4), pages 485-501, May.
  11. Hülsbeck, Marcel & Kitzinger, Elena N., 2011. "The impact of regional industries and universities on (high) technology entrepreneurship," UO Working Papers 03-11, University of Augsburg, Chair of Management and Organization.
  12. Niels Bosma & Frank van Oort, 2012. "Agglomeration Economies, Inventors and Entrepreneurs as Engines of European Regional Productivity," Working Papers 12-20, Utrecht School of Economics.
  13. Michael Wyrwich, 2011. "New business formation and regional growth across regions with distinct initial industry structures," ERSA conference papers ersa10p656, European Regional Science Association.
  14. Niels Bosma & Veronique Schutjens, 2011. "Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe," The Annals of Regional Science, Springer, vol. 47(3), pages 711-742, December.
  15. 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.
  16. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
  17. Mueller, Pamela, 2005. "Entrepreneurship in the region: Breeding ground for nascent enterpreneurs?," Freiberg Working Papers 2005,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  18. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
  19. Teemu Kautonen & Erno Tornikoski & Ewald Kibler, 2011. "Entrepreneurial intentions in the third age: the impact of perceived age norms," Small Business Economics, Springer, vol. 37(2), pages 219-234, September.

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