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Creative Destruction and Regional Competitiveness

Author

Listed:
  • Niels Bosma
  • F. Stam
  • Veronique Schutjens

Abstract

New firms stimulate competitiveness via market selection and competitive pressures, by forcing less efficient incumbents to exit or to improve their productivity. This way, both the creation and destruction of firms (turbulence) may improve competitiveness. In this paper the effect of turbulence on regional competitiveness (measured as total factor productivity and employment growth) is analysed in 40 regions in the Netherlands over the period 1988-2002. Our analyses suggest that turbulence leads to productivity growth in services but not so in manufacturing. Employment growth appears to benefit from firm dynamics in manufacturing.

Suggested Citation

  • Niels Bosma & F. Stam & Veronique Schutjens, 2006. "Creative Destruction and Regional Competitiveness," Scales Research Reports H200624, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h200624
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200624.pdf
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    Cited by:

    1. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
    2. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.
    3. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
    4. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.
    5. Martin Andersson & Pontus Braunerhjelm & Per Thulin, 2012. "Creative destruction and productivity: entrepreneurship by type, sector and sequence," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 1(2), pages 125-146, October.
    6. Urszula Bronisz & Wim Heijman & Andrzej Miszczuk, 2008. "Regional competitiveness in Poland: Creating an index," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 28(2), pages 133-143, September.
    7. A‐Reum Jung & Do‐Jin Jung, 2022. "The effects of size‐dependent policy on the sales distortion reporting: Focusing on the discretionary sales management of Korean SMEs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 301-320, March.
    8. Chen Liu, 2017. "International Competitiveness and the Fourth Industrial Revolution," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(4), pages 111-133.
    9. 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.
    10. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.

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