Start-up complexity and the thickness of regional input markets

Dirk Dohse and Andrea Vaona

No 1842, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Although there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others.

Keywords: Entrepreneurship; Start-up complexity; Thick markets; Regional analysis (search for similar items in EconPapers)
JEL-codes: D22 L26 M13 O31 R12 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Start-up complexity and the thickness of regional input markets (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1842

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