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Establishment of higher education institutions and new firm entry

Author

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  • Baptista, Rui
  • Lima, Francisco
  • Mendonça, Joana

Abstract

The presence of universities has generally been associated with technological entrepreneurship. But what is the real impact of new universities on the levels of firm creation in a region? The present paper uses policy evaluation methodologies and longitudinal data on the establishment of higher education institutions in Portuguese municipalities for the period 1992-2002 to examine its effect on entry rates of new firms in different sectors. We find that the establishment of a new university has a positive and significant effect on subsequent levels of knowledge based firm entry in municipalities, and a negative effect on the levels of entry in other sectors, such as low-tech manufacturing.

Suggested Citation

  • Baptista, Rui & Lima, Francisco & Mendonça, Joana, 2011. "Establishment of higher education institutions and new firm entry," Research Policy, Elsevier, vol. 40(5), pages 751-760, June.
  • Handle: RePEc:eee:respol:v:40:y:2011:i:5:p:751-760
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:respol:v:46:y:2017:i:8:p:1490-1504 is not listed on IDEAS
    2. 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.
    3. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    4. repec:bla:presci:v:96:y:2017:i::p:s1-s27 is not listed on IDEAS
    5. Farzana Chowdhury & David Audretsch, 2014. "Institution as looting apparatus: impact of gender equality and institutions on female entrepreneurship," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 207-225, December.
    6. Michael Fritsch & Ronney Aamoucke, 2013. "Regional public research, higher education, and innovative start-ups: an empirical investigation," Small Business Economics, Springer, vol. 41(4), pages 865-885, December.
    7. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
    8. Michael Fritsch & Ronney Aamoucke, 2014. "Fields of Knowledge, Types of Higher Education Institutions, and Innovative Start-Ups - An Empirical Investigation," Jena Economic Research Papers 2014-013, Friedrich-Schiller-University Jena.
    9. repec:eee:respol:v:46:y:2017:i:8:p:1519-1530 is not listed on IDEAS
    10. Heitor, Manuel & Horta, Hugo, 2016. "Reforming higher education in Portugal in times of uncertainty: The importance of illities, as non-functional requirements," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 146-156.
    11. Larsson, Johan P & Wennberg, Karl & Wiklund, Johan & Wright, Mike, 2017. "Location Choices of Graduate Entrepreneurs," Ratio Working Papers 290, The Ratio Institute.
    12. Hyytinen, Ari & Maliranta, Mika, 2013. "Firm lifecycles and evolution of industry productivity," Research Policy, Elsevier, vol. 42(5), pages 1080-1098.

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