Why does the effect of new business formation differ across regions?

By Michael Fritsch, Alexandra Schroeter. 2011

134 citations recorded by the source corpus.

We investigate regional differences in the effect of new business formation on employment growth in West Germany. We find an inverse U-shaped relationship between the level of start-up activity and employment change. The main variables that shape the employment effects of new businesses in a region are population density, the share of medium-skilled workers, the amount of innovation activities as measured by the proportion of research and development (R&D) employees, and an entrepreneurial character of the regional technological regime. In contrast, a high share of small-business employment has a negative influence on the employment effect of start-ups. Other indicators for education, innovation activity, and labor productivity do not prove to be statistically significant.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/ed0e5227efb846bac1a403a22c681f15904eb900

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In Economics and Econometrics

1. N. Bosma
2. E. Stam
3. Rolf Sternberg
4. M. Sanders
5. V. Schutjens
6. K. Bruns
7. Marc Schramm
8. Michael Fritsch

Citations in the corpus

• Taxes, corruption, and entry (2016, unknown): “We control for human capital in the country, measured as a percentage of population enrolled in tertiary education (Fritsch and Schroeter 2011).”
• Creative destruction and regional productivity growth: evidence from the Dutch manufacturing and services industries (2008, background): “the findings of Fritsch and Schroeter (2008) , who a nalyze several regional characteristics we”
• Searching for the existence of entrepreneurial ecosystems: a regional cross-section growth regression approach (2017, background): “type of competition, have been mentioned in the literature as possible moderating variables on the effect of entrepreneurship on (job) growth (Fritsch and Mueller 2008; Fritsch and Schroeter 2011; Fritsch and Noseleit 2013a, b; Unger et al. 2011).”
• Entrepreneurship as an Urban Event? Empirical Evidence from European Cities (2014, background): “…the regional economic impact of entrepreneurship seems to be positive and significant, while differences exist according to the type of regions, the duration of these effects and the type of entrepreneurial activity (e.g., FRITSCH and SCHROETER, 2011; FRITSCH, 2013; VAN OORT and BOSMA, 2013).”