The Industry Component of Regional New Firm Formation Processes

The Industry Component of Regional New Firm Formation Processes We demonstrate that the link between geographic specific factors and the propensity for entrepreneurs to start new firms varies from industry to industry. Linking regional startup rates in Germany during the late 1980s to geographic-specific factors for disaggregated manufacturing industries, we find that the impact of geographic specific factors of startup activity varies substantially across industries. In addition, the evidence suggests that it is factors specific to each industry, such as capital intensity, that shape the link between geographic-specific factors and new-firm startup activity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The Industry Component of Regional New Firm Formation Processes

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007722415439
Publisher site
See Article on Publisher Site

Abstract

We demonstrate that the link between geographic specific factors and the propensity for entrepreneurs to start new firms varies from industry to industry. Linking regional startup rates in Germany during the late 1980s to geographic-specific factors for disaggregated manufacturing industries, we find that the impact of geographic specific factors of startup activity varies substantially across industries. In addition, the evidence suggests that it is factors specific to each industry, such as capital intensity, that shape the link between geographic-specific factors and new-firm startup activity.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 15, 2004

References

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