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

Author

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

Abstract

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.

Suggested Citation

  • Brixy, Udo & Falck, Oliver & Fritsch, Michael, 2006. "The effect of industry, region, and time on new business survival - A multi-dimensional analysis," Munich Reprints in Economics 20195, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20195
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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