IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v23y2011i3-4p135-157.html
   My bibliography  Save this article

Employment from new firm formation in the Netherlands: Agglomeration economies and the Knowledge Spillover Theory of Entrepreneurship

Author

Listed:
  • Joris Knoben
  • Roderik Ponds
  • Frank van Oort

Abstract

Within the recent literature on the geography of new firm formation, much attention is given to the role of regional knowledge sources based on the Knowledge Spillover Theory of Entrepreneurship. At the same time, several other studies show the importance of agglomeration economies for new firm formation. The goal of this study is to assess the relative importance of these determinants for differences in the share of employment creation from new firms at the level of municipalities for the period of 1999--2006 in the Netherlands. It is found that the traditional drivers of new firm formation, such as economic growth and agglomeration effects, have a much stronger effect on new firm formation compared to measures of the regional knowledge base. Moreover, it is shown that when not correcting for the presence of agglomeration effects, the role of local knowledge resources is easily over-estimated, pointing to the dangers of misspecifications of models. The results imply that the knowledge spillover theory of entrepreneurship should, at least for the Netherlands, not be exaggerated.

Suggested Citation

  • Joris Knoben & Roderik Ponds & Frank van Oort, 2011. "Employment from new firm formation in the Netherlands: Agglomeration economies and the Knowledge Spillover Theory of Entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(3-4), pages 135-157, April.
    • Handle: RePEc:taf:entreg:v:23:y:2011:i:3-4:p:135-157
    DOI: 10.1080/08985620903183736
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08985620903183736
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08985620903183736?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Brenner & Dirk Fornahl, 2008. "Regional Path-Dependence in Start-up Activity," Papers in Evolutionary Economic Geography (PEEG) 0812, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2008.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Komlósi, Éva & Páger, Balázs, 2016. "The impact of urban concentration on countries’ competitiveness and entrepreneurial performance," MPRA Paper 73950, University Library of Munich, Germany.
    2. Carin van der Cruijsen & Joris Knoben, 2018. "Ctrl+C Ctrl+pay: Do people mirror payment behaviour of their peers?," DNB Working Papers 611, Netherlands Central Bank, Research Department.
    3. Alexandra Tsvetkova, 2015. "Innovation, Entrepreneurship, and Metropolitan Economic Performance," Economic Development Quarterly, , vol. 29(4), pages 299-316, November.
    4. Henley, Andrew, 2019. "Transitioning from Solo Self-Employed to Microbusiness Employer: Local Economic Environment or Owner Characteristics?," IZA Discussion Papers 12189, Institute of Labor Economics (IZA).
    5. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    6. Richard Henry Rijnks & Sierdjan Koster & Philip McCann, 2018. "Spatial Heterogeneity in Amenity and Labor Market Migration," International Regional Science Review, , vol. 41(2), pages 183-209, March.
    7. Heike Delfmann & Sierdjan Koster, 2016. "The effect of new business creation on employment growth in regions facing population decline," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 33-54, January.
    8. Minghao Li & Stephan J. Goetz & Mark Partridge & David A. Fleming, 2016. "Location determinants of high-growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 97-125, January.
    9. Ronja Kirschning & Matthias Mrożewski, 2023. "The role of entrepreneurial absorptive capacity for knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 60(1), pages 105-120, January.
    10. Balázs Páger & Éva Komlósi, 2015. "Agglomeration effects on countries' competitiveness and entrepreneurial performance," ERSA conference papers ersa15p503, European Regional Science Association.
    11. Christian Hundt & Rolf Sternberg, 2016. "Explaining new firm creation in Europe from a spatial and time perspective: A multilevel analysis based upon data of individuals, regions and countries," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 223-257, June.
    12. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.
    13. Yan Zhou & Sangmoon Park, 2020. "The Regional Determinants of the New Venture Formation in China’s Car-Sharing Economy," Sustainability, MDPI, vol. 13(1), pages 1-22, December.
    14. Jung Hun Yang & Dick Ettema & Koen Frenken & Frank van Oort & Evert-Jan Visser, 2011. "A geosimulation model of economic activity for supporting spatial planning and economic policy," ERSA conference papers ersa10p1016, European Regional Science Association.
    15. Carin Cruijsen & Joris Knoben, 2021. "Ctrl+C Ctrl+Pay: Do People Mirror Electronic Payment Behavior of their Peers?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 59(1), pages 69-96, April.
    16. Vasilios Kanellopoulos & Georgios Fotopoulos, 2019. "The effect of knowledge spillovers on regional new firm formation: The Greek manufacturing case," Environment and Planning A, , vol. 51(4), pages 1005-1030, June.
    17. Tung Son Ha & Vu Tuan Chu & Mai Tuyet Thi Nguyen & Dung Hoai Thi Nguyen & Anh Ngoc Thi Nguyen, 2021. "The impact of Greenfield investment on domestic entrepreneurship," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    18. repec:elg:eechap:14395_27 is not listed on IDEAS
    19. Davide Piacentino & Giuseppe Espa & Danila Filipponi & Diego Giuliani, 2017. "Firm Demography and Regional Development: Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 48(3), pages 359-389, September.
    20. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    21. Heike Delfmann & Sierdjan Koster, 2016. "The effect of new business creation on employment growth in regions facing population decline," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 33-54, January.
    22. Alexandra Tsvetkova & Mark Partridge, 2021. "Knowledge-based service economy and firm entry: an alternative to the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 56(2), pages 637-657, February.
    23. Noor Fauziah Isnaeni & Khoirunurrofik Khoirunurrofik, 2021. "The effect of knowledge spillovers and human capital through technological intensity on employment growth in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 21-39, February.
    24. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Stam, 2010. "Entrepreneurship, Evolution and Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 6, Edward Elgar Publishing.
    2. Erik Stam & Jan Lambooy, 2012. "Entrepreneurship, Knowledge, Space, and Place: Evolutionary Economic Geography meets Austrian Economics," Advances in Austrian Economics, in: The Spatial Market Process, pages 81-103, Emerald Group Publishing Limited.
    3. Niels Bosma & Veronique Schutjens, 2011. "Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 711-742, December.
    4. Tobias Scholl & Thomas Brenner & Martin Wendel, 2016. "Evolving localization patterns of company foundationsEvidence from the German MST-industry," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1067-1087, December.
    5. Frank Oort & Niels Bosma, 2013. "Agglomeration economies, inventors and entrepreneurs as engines of European regional economic development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 213-244, August.
    6. E. Stam & R. Martin, 2012. "When High Tech ceases to be High Growth: The Loss of Dynamism of the Cambridgeshire Regio," Working Papers 12-10, Utrecht School of Economics.
    7. Andrew Page & Jonny Holmström, 2023. "Enablers and inhibitors of digital startup evolution: a multi-case study of Swedish business incubators," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-28, December.
    8. Niels Bosma & Frank van Oort, 2012. "Agglomeration Economies, Inventors and Entrepreneurs as Engines of European Regional Productivity," Working Papers 12-20, Utrecht School of Economics.
    9. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:23:y:2011:i:3-4:p:135-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.