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Start-ups as drivers of market mobility: an analysis at the region–sector level for The Netherlands

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  • Sierdjan Koster
  • André Stel
  • Mickey Folkeringa

Abstract

Although recent literature suggests that competition among incumbent firms is caused by the entry of new firms, this relationship has not yet been tested directly. In this study a regression model is established in which a direct measure of competition among incumbent firms, the market mobility rate, is explained by start-up rates and control variables. The results show that the effect of start-ups on market mobility varies by sector. There is a strong positive relationship for industry sectors but an insignificant relationship for service sectors. These results suggest differences in the types of entry between sectors and in the roles start-ups play in different sectors. Copyright The Author(s) 2012

Suggested Citation

  • Sierdjan Koster & André Stel & Mickey Folkeringa, 2012. "Start-ups as drivers of market mobility: an analysis at the region–sector level for The Netherlands," Small Business Economics, Springer, vol. 39(3), pages 575-585, October.
    • Handle: RePEc:kap:sbusec:v:39:y:2012:i:3:p:575-585
    DOI: 10.1007/s11187-011-9331-x
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    Cited by:

    1. ITO Keiko & KATO Masatoshi, 2012. "Does New Entry Drive Out Incumbents? Evidence from establishment-level data in Japan," Discussion papers 12034, Research Institute of Economy, Trade and Industry (RIETI).
    2. Michael Fritsch, 2012. "Methods of analyzing the relationship between new business formation and regional development," Jena Economics Research Papers 2012-064, Friedrich-Schiller-University Jena.
    3. Sierdjan Koster & André Stel, 2014. "The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 203-217, March.
    4. Schneck, Stefan, 2018. "Times are a changin'? The emergence of new firms and rank persistence," Working Papers 01/18, Institut für Mittelstandsforschung (IfM) Bonn.
    5. Alexander S. Kritikos, 2024. "Entrepreneurs and their impact on jobs and economic growth," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-8.2, October.
    6. repec:elg:eechap:14395_27 is not listed on IDEAS
    7. Keiko Ito & Masatoshi Kato, 2016. "Does new entry drive out incumbents? The varying roles of establishment size across sectors," Small Business Economics, Springer, vol. 46(1), pages 57-78, January.
    8. Ressin, Marat, 2022. "Start-ups as drivers of economic growth," Research in Economics, Elsevier, vol. 76(4), pages 345-354.
    9. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, June.
    10. Amin, Mohammad, 2015. "Competition and labor productivity in India's retail stores," Journal of Asian Economics, Elsevier, vol. 41(C), pages 57-68.
    11. Christian Reiner & Maximilian Benner, 2022. "Cooperation bias in regional policy: Is competition neglected?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 187-221, August.
    12. Tubadji, Annie & Nijkamp, Peter & Santarelli, Enrico, 2017. "Shacklean Uncertainty and Cultural Embeddedness as Innovation Constraints in the UK," GLO Discussion Paper Series 111, Global Labor Organization (GLO).
    13. Fritsch, Michael, 2013. "New Business Formation and Regional Development: A Survey and Assessment of the Evidence," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(3), pages 249-364, February.
    14. Mekonnen Bogale Abegaz & Kenenisa Lemi Debela & Reta Megersa Hundie, 2023. "The effect of governance on entrepreneurship: from all income economies perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-18, December.
    15. Sierdjan Koster & Andrè van Stel & Mickey Folkeringa, 2011. "Start-up intensity, competition and regional economic development," ERSA conference papers ersa10p556, European Regional Science Association.

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    More about this item

    Keywords

    Start-ups; Incumbent firms; Competition; Market mobility; O18; L16; M13;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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