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Start-ups as drivers of market mobility: an analysis at the region–sector level for The Netherlands

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  • Sierdjan Koster

    ()

  • André Stel

    ()

  • Mickey Folkeringa

    ()

Abstract

Although recent literature suggests that competition among incumbent firms is caused by the entry of new firms, this relationship has not yet been tested directly. In this study a regression model is established in which a direct measure of competition among incumbent firms, the market mobility rate, is explained by start-up rates and control variables. The results show that the effect of start-ups on market mobility varies by sector. There is a strong positive relationship for industry sectors but an insignificant relationship for service sectors. These results suggest differences in the types of entry between sectors and in the roles start-ups play in different sectors. Copyright The Author(s) 2012

Suggested Citation

  • Sierdjan Koster & André Stel & Mickey Folkeringa, 2012. "Start-ups as drivers of market mobility: an analysis at the region–sector level for The Netherlands," Small Business Economics, Springer, vol. 39(3), pages 575-585, October.
  • Handle: RePEc:kap:sbusec:v:39:y:2012:i:3:p:575-585
    DOI: 10.1007/s11187-011-9331-x
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    References listed on IDEAS

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    1. Stonebraker, Robert J, 1979. "Turnover and Mobility among the 100 Largest Firms: An Update," American Economic Review, American Economic Association, vol. 69(5), pages 968-973, December.
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    Citations

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    Cited by:

    1. ITO Keiko & KATO Masatoshi, 2012. "Does New Entry Drive Out Incumbents? Evidence from establishment-level data in Japan," Discussion papers 12034, Research Institute of Economy, Trade and Industry (RIETI).
    2. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, June.
    3. Fritsch, Michael, 2013. "New Business Formation and Regional Development: A Survey and Assessment of the Evidence," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(3), pages 249-364, February.
    4. Keiko Ito & Masatoshi Kato, 2016. "Does new entry drive out incumbents? The varying roles of establishment size across sectors," Small Business Economics, Springer, vol. 46(1), pages 57-78, January.
    5. Amin, Mohammad, 2015. "Competition and labor productivity in India's retail stores," Journal of Asian Economics, Elsevier, vol. 41(C), pages 57-68.
    6. Schneck, Stefan, 2018. "Times are a changin'? The emergence of new firms and rank persistence," Working Papers 01/18, Institut für Mittelstandsforschung (IfM) Bonn.
    7. Michael Fritsch, 2012. "Methods of analyzing the relationship between new business formation and regional development," Jena Economic Research Papers 2012-064, Friedrich-Schiller-University Jena.
    8. Alexander Kritikos, 2014. "Entrepreneurs and their impact on jobs and economic growth," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-8, May.
    9. repec:elg:eechap:14395_27 is not listed on IDEAS
    10. Sierdjan Koster & Andrè van Stel & Mickey Folkeringa, 2011. "Start-up intensity, competition and regional economic development," ERSA conference papers ersa10p556, European Regional Science Association.
    11. Tubadji, Annie & Nijkamp, Peter & Santarelli, Enrico, 2017. "Shacklean Uncertainty and Cultural Embeddedness as Innovation Constraints in the UK," GLO Discussion Paper Series 111, Global Labor Organization (GLO).
    12. Sierdjan Koster & André Stel, 2014. "The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 203-217, March.

    More about this item

    Keywords

    Start-ups; Incumbent firms; Competition; Market mobility; O18; L16; M13;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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