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Regional Knowledge, Entrepreneurial Culture and Innovative Start-ups over Time and Space - An Empirical Investigation

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  • Michael Fritsch

    () (FSU Jena)

  • Michael Wyrwich

    () (FSU Jena)

Abstract

We investigate the role of entrepreneurship culture and the historical knowledge base of a region on current levels of new business formation in innovative industries. The analysis is for German regions and covers the time period 1907-2014. We find a pronounced positive relationship between high levels of historical self-employment in science-based industries and new business formation in innovative industries today. This long-term legacy effect of entrepreneurial tradition indicates the prevalence of a regional culture of entrepreneurship. Moreover, local presence and geographic proximity to a technical university founded before the year 1900 is positively related to the level of innovative start-ups more than a century later. The results show that a considerable part of the knowledge that constitutes an important source of entrepreneurial opportunities is deeply rooted in history. We draw conclusions for policy and for further research.

Suggested Citation

  • Michael Fritsch & Michael Wyrwich, 2018. "Regional Knowledge, Entrepreneurial Culture and Innovative Start-ups over Time and Space - An Empirical Investigation," Jena Economic Research Papers 2018-001, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2018-001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michael Fritsch & Martin Obschonka & Michael Wyrwich, 2018. "Historical Roots of Entrepreneurial Culture and Innovation Activity?An Analysis for German Regions," Papers in Evolutionary Economic Geography (PEEG) 1824, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2018.
    2. repec:spr:intemj:v:15:y:2019:i:1:d:10.1007_s11365-018-0538-z is not listed on IDEAS
    3. repec:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0001-0 is not listed on IDEAS
    4. repec:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0005-9 is not listed on IDEAS
    5. David B. Audretsch & Albert N. Link, 2019. "Entrepreneurship and knowledge spillovers from the public sector," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 195-208, March.
    6. Claire Economidou & Luca Grilli & Magnus Henrekson & Mark Sanders, 2018. "Financial and Institutional Reforms for an Entrepreneurial Society," Small Business Economics, Springer, vol. 51(2), pages 279-291, August.

    More about this item

    Keywords

    Innovative start-ups; universities; regional knowledge; regional cultures of entrepreneurship;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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