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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 Economics Research Papers 2018-001, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2018-001
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    More about this item

    Keywords

    Innovative start-ups; universities; regional knowledge; regional cultures of entrepreneurship;
    All these keywords.

    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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