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Persistence and change of regional new business formation in the national league table

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  • Michael Fritsch

    (Friedrich Schiller University Jena
    Halle Institute for Economic Research (IWH))

  • Sandra Kublina

    (Friedrich Schiller University Jena)

Abstract

We investigate persistence and change of regional new business formation in West Germany over a period of 30 years. Our indicator is the position of a region in the national ranking. We confirm the role of several sources of this persistence, namely, persistence in regional determinants of new business formation and path dependence in new business formation activity. The results for the role of a distinct regional culture of entrepreneurship are, however, ambiguous. Main factors that are related to changes in the national ranking are the employment share in small businesses, the share of manufacturing employment and a relatively low regional wage level. R&D activities are also conducive for new business formation but become effective only with a time lag.

Suggested Citation

  • Michael Fritsch & Sandra Kublina, 2019. "Persistence and change of regional new business formation in the national league table," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 891-917, July.
  • Handle: RePEc:spr:joevec:v:29:y:2019:i:3:d:10.1007_s00191-019-00610-5
    DOI: 10.1007/s00191-019-00610-5
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    Cited by:

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    2. Yue Dai, 2021. "A Behavioral Cultural-Based Development Analysis of Entrepreneurship in China," Administrative Sciences, MDPI, vol. 11(3), pages 1-16, September.
    3. Michael Fritsch & Michael Wyrwich, 2017. "Persistence of Regional Entrepreneurship: Causes, Effects, and Directions for Future Research," Jena Economic Research Papers 2017-003, Friedrich-Schiller-University Jena.
    4. Michael Fritsch & Michael Wyrwich, 2016. "Does persistence in start-up activity reflect persistence in social capital?," Chapters, in: Hans Westlund & Johan P. Larsson (ed.), Handbook of Social Capital and Regional Development, chapter 4, pages 82-107, Edward Elgar Publishing.
    5. Liang Xu & Zhigao Liu, 2022. "The Evolution of the Spatial Patterns of Startup Firms in the Tibet Autonomous Region, China in the 21st Century," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    6. Michael Fritsch & Korneliusz Pylak & Michael Wyrwich, 2022. "Historical roots of entrepreneurship in different regional contexts—the case of Poland," Small Business Economics, Springer, vol. 59(1), pages 397-412, June.

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    More about this item

    Keywords

    Entrepreneurship; New business formation; Economic development; Regional growth regimes;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • 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
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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