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The effect of industry, region, and time on new business survival - A multi-dimensional analysis

  • Brixy, Udo
  • Falck, Oliver
  • Fritsch, Michael

We analyze the effect of industry, region, and time on new businesssurvival rates by means of a multi-dimensional approach. The data relateto West German districts in the 1983-2000 period. The survival chancesof start-ups tend to be relatively low in industries characterized by ahigh minimum efficient size and high numbers of entries. We find thatregional characteristics play a rather important role and thatintroducing the regional dimension leads to considerable improvements ofthe estimation results. The significance of the regional dimension isalso reflected in a remarkably high level of neighborhood effects.

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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20195.

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Date of creation: 2006
Date of revision:
Publication status: Published in Review of Industrial Organization 3 28(2006): pp. 285-306
Handle: RePEc:lmu:muenar:20195
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  11. Michael Fritsch & Sandra Kublina, 2015. "Entrepreneurship,Growth, Regional Growth Regimes," Jena Economic Research Papers 2015-002, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  12. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
  13. 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.
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  23. Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
  24. Grotz, Reinhold & Brixy, Udo, 2002. "Entry-rates, the share of surviving businesses and employment growth: differences between West and East Germany since unification," ERSA conference papers ersa02p175, European Regional Science Association.
  25. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
  26. Michael Fritsch, 2000. "Interregional Differences in R&D Activities—An Empirical Investigation," European Planning Studies, Taylor & Francis Journals, vol. 8(4), pages 409-427, August.
  27. Michael Fritsch & Udo Brizy, 2004. "European Data Watch: The Establishment File of the German Social Insurance Statistcs," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(1), pages 183-190.
  28. Dunne, T. & Roberts, M.J., 1989. "Variation In Producer Turnover Across U.S. Manufacturing Industries," Papers 12-89-2, Pennsylvania State - Department of Economics.
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