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Firm formation and regional spillovers: evidence from Germany

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  • Harhoff, Dietmar

Abstract

This paper studies the effect of regional spillovers on the rate of firm formation in two major West German industries for the time period from 1989 to 1993. I exploit regional variations in firm formation at the county level to identify the effects of historically given industry structure and employment structure on the emergence of new firms. The results are consistent with the existence of localization and urbanization effects. The emergence of high technology firms seems to be contingent on a heterogeneous historical industry structure, the existence of service providers and in particular on a high share of scientists in universities and extra-university research laboratories.

Suggested Citation

  • Harhoff, Dietmar, 1995. "Firm formation and regional spillovers: evidence from Germany," ZEW Discussion Papers 95-11, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:9511
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    More about this item

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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