Start-ups as drivers of market mobility: an analysis at the region–sector level for The Netherlands

Sierdjan Koster (), André van Stel and Mickey Folkeringa ()

Small Business Economics, 2012, vol. 39, issue 3, 575-585

Abstract: Although recent literature suggests that competition among incumbent firms is caused by the entry of new firms, this relationship has not yet been tested directly. In this study a regression model is established in which a direct measure of competition among incumbent firms, the market mobility rate, is explained by start-up rates and control variables. The results show that the effect of start-ups on market mobility varies by sector. There is a strong positive relationship for industry sectors but an insignificant relationship for service sectors. These results suggest differences in the types of entry between sectors and in the roles start-ups play in different sectors. Copyright The Author(s) 2012

Keywords: Start-ups; Incumbent firms; Competition; Market mobility; O18; L16; M13 (search for similar items in EconPapers)
Date: 2012
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Working Paper: Start-ups as drivers of market mobility: An analysis at the region-sector level for the Netherlands (2010)
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DOI: 10.1007/s11187-011-9331-x

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