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Methods of analyzing the relationship between new business formation and regional development

  • Michael Fritsch

    ()

    (Friedrich Schiller University Jena, School of Economics and Business Administration)

The paper reviews the approaches that have been followed for analyzing the effect of new business formation on regional development. It begins with an outline of how start-ups may affect regional development. In dealing with different ways of empirically assessing these effects, I particularly stress the importance of indirect effects and of accounting for sufficiently long time lags. Finally, I discuss the issue of causality as well as avenues for further research about this important topic.

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File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2012_064.pdf
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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2012-064.

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Date of creation: 26 Nov 2012
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Handle: RePEc:jrp:jrpwrp:2012-064
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  1. Paolo Saviotti & Andreas Pyka, 2003. "Economic Development, variety and employment," Working Papers geewp35, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
  2. David B. Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Papers on Entrepreneurship, Growth and Public Policy 2004-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  3. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, 06.
  4. Andersson, Martin & Braunerhjelm, Pontus & Thulin, Per, 2011. "Creative Destruction and Productivity – entrepreneurship by type, sector and sequence," Working Paper Series in Economics and Institutions of Innovation 256, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Sjoerd Beugelsdijk, 2007. "Entrepreneurial culture, regional innovativeness and economic growth," Journal of Evolutionary Economics, Springer, vol. 17(2), pages 187-210, April.
  6. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.
  7. 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.
  8. Erik Stam, 2006. "Why Butterflies Don’t Leave. Locational behaviour of entrepreneurial firms," Papers on Entrepreneurship, Growth and Public Policy 2006-20, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  9. Michael Fritsch & Pamela Mueller, 2006. "The Effect of New Business Formation on Regional Development over Time: The Case of Germany," Papers on Entrepreneurship, Growth and Public Policy 2006-19, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  10. André van Stel & Roy Thurik & Chantal Hartog & Simon Parker, 2010. "The two-way relationship between entrepreneurship and economic performance," Scales Research Reports H200822, EIM Business and Policy Research.
  11. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
  12. André van Stel & Sierdjan Koster, 2011. "The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions," Scales Research Reports H201104, EIM Business and Policy Research.
  13. Niels Bosma & Erik Stam & Veronique Schutjens, 2008. "Creative Destruction and Regional Productivity Growth: Evidence from the Dutch Manufacturing and Services Industries," Papers in Evolutionary Economic Geography (PEEG) 0813, Utrecht University, Section of Economic Geography, revised Aug 2008.
  14. Yvonne Schindele & Antje Weyh, 2011. "The direct employment effects of new businesses in Germany revisited: an empirical investigation for 1976–2004," Small Business Economics, Springer, vol. 36(3), pages 353-363, April.
  15. James R Spletzer, 1998. "The Contribution Of Establishment Births And Deaths To Employment Growth," Working Papers 98-5, Center for Economic Studies, U.S. Census Bureau.
  16. Fritsch, Michael, 2013. "New Business Formation and Regional Development: A Survey and Assessment of the Evidence," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(3), pages 249-364, February.
  17. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925-2005," Jena Economic Research Papers 2012-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  18. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
  19. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, 02.
  20. Ron Boschma & Koen Frenken, 2011. "The emerging empirics of evolutionary economic geography," Papers in Evolutionary Economic Geography (PEEG) 1101, Utrecht University, Section of Economic Geography, revised Jan 2011.
  21. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.
  22. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  23. Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
  24. Martin Andersson & Florian Noseleit, 2011. "Start-ups and employment dynamics within and across sectors," Small Business Economics, Springer, vol. 36(4), pages 461-483, May.
  25. André van Stel & Mickey Folkeringa & Sierdjan Koster, 2010. "Start-ups as drivers of market mobility: An analysis at the region-sector level for the Netherlands," Scales Research Reports H200905, EIM Business and Policy Research.
  26. Poh Wong & Yuen Ho & Erkko Autio, 2005. "Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data," Small Business Economics, Springer, vol. 24(3), pages 335-350, 01.
  27. William J. Baumol, 2004. "Entrepreneurial Enterprises, Large Established Firms and Other Components of the Free-Market Growth Machine," Small Business Economics, Springer, vol. 23(1), pages 9-21, 08.
  28. Pamela Mueller, 2007. "Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth," Small Business Economics, Springer, vol. 28(4), pages 355-362, April.
  29. J.W.B. Bos & E. Stam, 2011. "Gazelles, Industry Growth and Structural Change," Working Papers 11-02, Utrecht School of Economics.
  30. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511, March.
  31. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
  32. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
  33. Ron Boschma, 2004. "Competitiveness of Regions from an Evolutionary Perspective," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1001-1014.
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