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Entrepreneurial Spillovers over Space and Time

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  • Frank M. Fossen
  • Thorsten Martin

Abstract

Entrepreneurship is a local and dynamic phenomenon. We jointly investigate spatial spillovers and time persistence of regional new business formation. Using panel data from all 402 German counties for 1996-2011, we estimate dynamic spatial panel models of business creation in the high-tech and manufacturing industries. We consider regions of different sizes and systematically search for the most suitable spatial weighting matrices. We find substantial spatial spillovers as well as time persistence of start-up activity, especially in the high-tech industry. This indicates that entrepreneurship is deeply rooted in regions and underlines the importance of local entrepreneurship culture for new business formation.

Suggested Citation

  • Frank M. Fossen & Thorsten Martin, 2016. "Entrepreneurial Spillovers over Space and Time," Discussion Papers of DIW Berlin 1618, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1618
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    References listed on IDEAS

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    2. Zemtsov, S. & Tsareva, Y., 2018. "Entrepreneurial Activity in the Russian Regions: How Spatial and Temporal Effects Determine the Development of Small Business," Journal of the New Economic Association, New Economic Association, vol. 37(1), pages 145-165.

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    More about this item

    Keywords

    Entrepreneurship; new business formation; spatial spillovers; path dependency; persistence; spatial panel;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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