Measuring business dynamics among incumbent firms in The Netherlands

Mickey Folkeringa, André van Stel, Kashifa Suddle and Sita Tan

International Journal of Entrepreneurship and Small Business, 2011, vol. 12, issue 2, 185-206

Abstract: Business dynamics in an industry is generally seen as an important indicator of the industry's level of competitiveness and economic performance. Two types of business dynamics may be distinguished: business dynamics reflecting competition by new-firm entries and business dynamics reflecting competition among incumbent firms. The current paper pays attention to the latter type of business dynamics. A sophisticated indicator for measuring the extent of business dynamics among incumbent firms in an industry is the mobility index. In the current paper we compute mobility indices for 16 industries – covering the whole private sector except for the primary sectors of economy – in The Netherlands over the period 2000-2006, and compare the values of the mobility indices across the sectors.

Keywords: business dynamics; Markov chains; incumbent firms; mobility measurement; Netherlands; Holland; competitiveness; economic performance; competition; new-firm entries; mobility indices; private sector; index values; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Working Paper: Measuring business dynamics among incumbent firms in The Netherlands (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijesbu:v:12:y:2011:i:2:p:185-206

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