When the difference makes a difference – the regional embeddedness of entrepreneurship

Robert J. Breitenecker, Rainer Harms, Antje Weyh, Daniela Maresch and Sascha Kraus

Entrepreneurship & Regional Development, 2017, vol. 29, issue 1-2, 71-93

Abstract: Regional determinants of new firm formation are of interest to researchers and policymakers. In the analysis of new firm formation, most studies use econometric approaches that mask intra-unit variations, not recognizing counterbalancing and dilution effects as a result. Recent advances in spatial statistics such as Geographically Weighted Regression (GWR) take local variations into account. However, these approaches operate only on a bivariate level, making it impossible to detect the homogenous parts of the area under examination with regard to a number of relationships between new firm formation and its determinants. Based on a sample of 412 German regions, we apply GWR and subsequent graph-partitioning clustering to identify multi-relationally homogeneous sub-areas. Being that the results suggest a four-cluster solution, ‘one size fits all’ policies and premature unit zoning can be called into question.

Date: 2017
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DOI: 10.1080/08985626.2016.1255432

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