The Persistence of Regional New Business Formation-Activity over Time - Assessing the Potential of Policy Promotion Programs

Michael Fritsch () and Pamela Mueller ()

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather path-dependent so that changes are relatively small. The main factors determining the level of regional start-ups are innovation and entrepreneurship. These factors also seem to be responsible for changes in the level of regional new business formation. In addition, unemployment plays a role. Steering innovation and creating an entrepreneurial atmosphere could be an appropriate starting point for policy measures that try to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run.

Keywords: New businesses; entrepreneurship; growth regimes; time lags (search for similar items in EconPapers)
JEL-codes: M13 O1 O18 R11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2005-01
New Economics Papers: this item is included in nep-bec, nep-ent, nep-geo and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs (2007)
Working Paper: The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs (2005)
Working Paper: The persistence of regional new business formation-activity over time: assessing the potential of policy promotion programs (2005)
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