Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry

Alexandra Tsvetkova

MPRA Paper from University Library of Munich, Germany

Abstract: This paper tests the effect of diversity, creativity and localized competition on firm formation in US computer and electronic product manufacturing within the knowledge spillover theory of entrepreneurship (KSTE) framework. Fixed effects instrumental variable estimation results support the KSTE contention of a positive relationship between knowledge and entrepreneurship. Industrial diversity and diversity of knowledge tend to promote endogenous firm entry, whereas evidence on other factors is mixed. This points to sensitivity of conclusions in the KSTE literature to regional and industrial environments and calls for caution in interpreting and generalizing findings obtained in various settings.

Keywords: innovation; entrepreneurship; firm formation; knowledge spillover theory of entrepreneurship; computer and electronic product manufacturing (search for similar items in EconPapers)
JEL-codes: O1 O3 R1 R11 (search for similar items in EconPapers)
Date: 2016-04-19
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ent, nep-geo, nep-ger, nep-ino, nep-sbm, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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