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Persistence and Change of Regional New Business Formation in the National League Table

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  • Michael Fritsch

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

  • Sandra Kublina

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

Abstract

We investigate persistence and change of the levels of regional new business formation in West Germany over a period of thirty years. Our indicator is the position of a region in the national ranking. As indicated by previous studies, we generally find a rather high level of persistence and confirm the role of several sources of this persistence, namely, persistence in regional determinants of new business formation, distinct regional cultures of entrepreneurship, and path dependence in new business formation activity. There are, however, also a number of regions that have moved up or down in the national ranking by a considerable number of positions. We find that main factors that are related to such rank changes are R&D activities, industry diversity, and regional wage levels.

Suggested Citation

  • Michael Fritsch & Sandra Kublina, 2016. "Persistence and Change of Regional New Business Formation in the National League Table," Jena Economic Research Papers 2016-001, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2016-001
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    References listed on IDEAS

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    Cited by:

    1. Michael Fritsch & Michael Wyrwich, 2016. "Does persistence in start-up activity reflect persistence in social capital?," Chapters,in: Handbook of Social Capital and Regional Development, chapter 4, pages 82-107 Edward Elgar Publishing.
    2. Michael Fritsch & Michael Wyrwich, 2017. "Persistence of Regional Entrepreneurship: Causes, Effects, and Directions for Future Research," Jena Economic Research Papers 2017-003, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    Entrepreneurship; new business formation; economic development; regional growth regimes;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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