Demography and Innovative Entrepreneurship
Demographic change will be one of the major challenges for economic policy in the developed world in the next decades. In this article, we analyze the relationship between age structure and the number of startups. We argue that an individual’s decision to start a business is determined by his or her age and, therefore, that a change in a region’s age distribution affects the expected number of startups in the region. Using German regional data, we estimate a count-data model and find that the expected number of startups is positively influenced by the fraction of individuals of working age—20–64 years old. A more detailed analysis of the working-age distribution suggests that startups in knowledge-based (high-tech) manufacturing industries are affected by changes in this distribution whereas firms in other industries are not. In particular, increases in the fraction of individuals in the 20–30 age range and individuals in the 40–50 age range have a positive effect on the number of high-tech startups.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Blundell & Rachel Griffith & John Van Reenen, 1994.
"Dynamic count data models of technological innovation,"
IFS Working Papers
W94/10, Institute for Fiscal Studies.
- Blundell, Richard & Griffith, Rachel & Van Reenen, John, 1995. "Dynamic Count Data Models of Technological Innovation," Economic Journal, Royal Economic Society, vol. 105(429), pages 333-44, March.
- Bernard M.S. van Praag & Adam S. Booij, 2003. "Risk Aversion and the Subjective Time Discount Rate: A Joint Approach," CESifo Working Paper Series 923, CESifo Group Munich.
- Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984.
"Econometric Models for Count Data with an Application to the Patents-R&D Relationship,"
Econometric Society, vol. 52(4), pages 909-38, July.
- Jerry A. Hausman & Bronwyn H. Hall & Zvi Griliches, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," NBER Technical Working Papers 0017, National Bureau of Economic Research, Inc.
- Wooldridge, J.M., 1990.
"Distribution-Free Estimation Of Some Nonlinear Panel Data Models,"
564, Massachusetts Institute of Technology (MIT), Department of Economics.
- Wooldridge, Jeffrey M., 1999. "Distribution-free estimation of some nonlinear panel data models," Journal of Econometrics, Elsevier, vol. 90(1), pages 77-97, May.
- Brunow, Stephan & Hirte, Georg, 2005. "Age Structure and Regional Income Growth," Discussion Papers 1/2005, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
- Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
- Hans-Werner Sinn, 2007.
"Can Germany Be Saved?: The Malaise of the World's First Welfare State,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262195585, June.
- Hans-Werner Sinn, 2009. "Can Germany Be Saved?: The Malaise of the World's First Welfare State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262512602, June.
- P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
- repec:cup:cbooks:9780521828130 is not listed on IDEAS
- David G. Blanchflower, 2000.
"Self-Employment in OECD Countries,"
NBER Working Papers
7486, National Bureau of Economic Research, Inc.
- Bloom, David E. & Canning, David & Fink, Gunther & Finlay, Jocelyn E., 2007.
"Does age structure forecast economic growth?,"
International Journal of Forecasting,
Elsevier, vol. 23(4), pages 569-585.
- David E. Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2006. "Does Age Structure Forecast Economic Growth?," PGDA Working Papers 2006, Program on the Global Demography of Aging.
- David E. Bloom & David Canning & Günther Fink & Jocelyn E. Finlay, 2007. "Does Age Structure Forecast Economic Growth?," NBER Working Papers 13221, National Bureau of Economic Research, Inc.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
- Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005.
"Growth and Entrepreneurship: An Empirial Assessment,"
Papers on Entrepreneurship, Growth and Public Policy
2005-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Acs, Zoltán J & Audretsch, David B & Braunerhjelm, Pontus & Carlsson, Bo, 2006. "Growth and Entrepreneurship: An Empirical Assessment," CEPR Discussion Papers 5409, C.E.P.R. Discussion Papers.
- Fritsch, Michael & Falck, Oliver, 2007.
"New business formation by industry over space and time: A multidimensional analysis,"
Munich Reprints in Economics
20306, University of Munich, Department of Economics.
- Michael Fritsch & Oliver Falck, 2007. "New Business Formation by Industry over Space and Time: A Multidimensional Analysis," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 157-172.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Acs, Zoltan J. & Armington, Catherine, 2004.
"The impact of geographic differences in human capital on service firm formation rates,"
Journal of Urban Economics,
Elsevier, vol. 56(2), pages 244-278, September.
- Zoltan J. Acs & Catherine Armington, 2004. "The Impact of Geographic Differences in Human Capital on Service Firm Formation Rates," Papers on Entrepreneurship, Growth and Public Policy 2004-15, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511, March.
- Blau, David M, 1987. "A Time-Series Analysis of Self-employment in the United State," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 445-67, June.
- Audretsch, David B. & Bönte, Werner & Keilbach, Max, 2008. "Entrepreneurship capital and its impact on knowledge diffusion and economic performance," Journal of Business Venturing, Elsevier, vol. 23(6), pages 687-698, November.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_2115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.