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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.

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  • 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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    Cited by:

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    2. 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.
    3. Balaussa Azubayeva, 2021. "The Impact of Cultural Capital on Development of Entrepreneurship in Wales," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, December.
    4. Michael Fritsch & Michael Wyrwich, 2021. "Does Successful Innovation Require Large Urban Areas? Germany as a Counterexample," Economic Geography, Taylor & Francis Journals, vol. 97(3), pages 284-308, May.
    5. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    6. Zemtsov, S., 2022. "Technological entrepreneurship as a development factor of Russia," Journal of the New Economic Association, New Economic Association, vol. 53(1), pages 212-223.
    7. Michael Fritsch & Martin Obschonka & Fabian Wahl & Michael Wyrwich, 2021. "Cultural Imprinting: Ancient Origins of Entrepreneurship and Innovation in Germany," Jena Economic Research Papers 2021-012, Friedrich-Schiller-University Jena.
    8. Daniel L. Bennett, 2021. "Local institutional heterogeneity & firm dynamism: Decomposing the metropolitan economic freedom index," Small Business Economics, Springer, vol. 57(1), pages 493-511, June.
    9. 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.
    10. 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.
    11. Štefan Slávik, 2019. "The Business Model of Start-Up—Structure and Consequences," Administrative Sciences, MDPI, vol. 9(3), pages 1-23, September.
    12. Amendola, Adalgiso & Barra, Cristian & Zotti, Roberto, 2020. "Human Capital, Good Government and Economic Development: Evidence from Italian Provinces," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202023, University of Turin.
    13. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.
    14. Friederike Welter & Ted Baker, 2021. "Moving Contexts Onto New Roads: Clues From Other Disciplines," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1154-1175, September.
    15. Pourya Darnihamedani & Joern Hendrich Block & Jolanda Hessels & Aram Simonyan, 2018. "Taxes, start-up costs, and innovative entrepreneurship," Small Business Economics, Springer, vol. 51(2), pages 355-369, August.
    16. Alfredo Monte & Sara Moccia & Luca Pennacchio, 2022. "Regional entrepreneurship and innovation: historical roots and the impact on the growth of regions," Small Business Economics, Springer, vol. 58(1), pages 451-473, January.
    17. William J Scarborough, 2020. "Occupational gender segregation and economic growth in U.S. local labor markets, 1980 through 2010," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-21, January.
    18. Michael Fritsch & Korneliusz Pylak & Michael Wyrwich, 2022. "Historical roots of entrepreneurship in different regional contexts—the case of Poland," Small Business Economics, Springer, vol. 59(1), pages 397-412, June.
    19. Marco Gazel & Armin Schwienbacher, 2021. "Entrepreneurial fintech clusters," Small Business Economics, Springer, vol. 57(2), pages 883-903, August.
    20. Štefan Slávik & Richard Bednár & Ivana Mišúnová Hudáková & Branislav Zagoršek, 2021. "Business models of start-ups and their impact on the sustainability of nascent business," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 29-52, June.
    21. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    22. Daniel L. Bennett & Boris Nikolaev, 2021. "Individualism, pro-market institutions, and national innovation," Small Business Economics, Springer, vol. 57(4), pages 2085-2106, December.

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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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