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The Role of Regional Conditions for Newly Emerging KIBS Industries in the Face of Radical Institutional Change

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  • Michael Wyrwich

Abstract

This paper is devoted to analysing the effect of regional conditions on start-up activities in the knowledge-intensive business service (KIBS) industries. The region under analysis is the former German Democratic Republic (GDR), which experienced a "shock transition" of the institutional framework in the course of its reunification with the Federal Republic of Germany in 1990. KIBS industries did not exist in the former GDR. The results show that KIBS start-up activity emerged in densely populated areas and in regions with a large market size. The regional stock of knowledge has a significant positive effect on start-up activity as well. Altogether, the findings show that regional conditions matter even if the economic system that shaped these conditions followed completely different guiding principles from a market economy.

Suggested Citation

  • Michael Wyrwich, 2013. "The Role of Regional Conditions for Newly Emerging KIBS Industries in the Face of Radical Institutional Change," European Planning Studies, Taylor & Francis Journals, vol. 21(11), pages 1760-1778, November.
    • Handle: RePEc:taf:eurpls:v:21:y:2013:i:11:p:1760-1778
    DOI: 10.1080/09654313.2012.753694
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    Cited by:

    1. Terstriep, Judith & David, Alexandra & Ruthemeier, Alexander & Elo, Maria, 2022. "The role of local embeddedness of transnational migrant start-ups in the COVID-19 crises: Examples from the Berlin start-up ecosystem," IAT Discussion Papers 22/05, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    2. Ian Miles & Veronika Belousova & Nikolay Chichkanov, 2017. "Innovation Configurations in Knowledge-Intensive Business Services," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 94-102.

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