New firm formation by industry over space and time: a multi-level analysis for Germany

Michael Fritsch () and Oliver Falck

ERSA conference papers from European Regional Science Association

Abstract: We apply a multi-level approach to analyze the effect of three groups of determinants on new firm formation simultaneously: industry, location and changes over time. The data are for West Germany and cover the 1983-97 period. Our analysis indicates, that innovation activities and the technological regime play a significant role for new firm formation processes. There are also considerable differences with regard to the impact of a number of variables on startups between manufacturing and the service sector. Changes in demand are conducive for new firm formation while a high level of unemployment in a region obviously makes a relatively uncomfortable environment for start-ups. JEL classification: D21, L10, R10 Keywords: New firm formation, industrial economics, regional economics, entrepreneurship.

Date: 2002-08
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa02p486

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