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External economies of localization, urbanization and industrial diversity and new firm survival

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Listed:
  • Renski, Henry

Abstract

This paper explores how external economies influence the survival of new, independent business establishments in the continental United States using a confidential, establishment†level dataset on new firm longevity. Industrial localization has a positive influence on new businesses survival in five of the eight industries examined. Regional industrial diversity is also beneficial to new firms in five study industries, particularly those that are more knowledge†intensive. The benefits of city size are limited to two study industries, with diseconomies of size found for an additional three.

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Handle: RePEc:eee:paresc:v:90:y:2011:i:3:p:473-503
DOI: 10.1111/j.1435-5957.2010.00325.x
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JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
  • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
  • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
  • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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