New Firm Survival: The Interdependence between Regional Externalities and Innovativeness

Tobias Ebert, Thomas Brenner () and Udo Brixy ()
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Tobias Ebert: Philipps-University of Marburg, Economic Geography and Location Analysis, Deutschhausstrasse 10, 35032 Marburg, Germany

No 2015-05, Working Papers on Innovation and Space from Philipps University Marburg, Department of Geography

Abstract: This paper provides evidence that the effect of agglomeration externalities on survival is moderated by the start-up’s innovative behavior. It is shown that localization externalities are prevalent particularly in non-high-tech environments and unfold a positive influence on survival for less innovative companies, while their highly innovative counterparts do not benefit or even suffer from spatial concentration. On the contrary, highly innovative high-tech start-ups benefit from a diverse economic structure which enhances their likelihood for survival by fostering the emergence of beneficial inter-industry spill-overs.

Keywords: Firm survival; Innovation; Externalities (search for similar items in EconPapers)
JEL-codes: D22 L26 O33 R11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-12-16
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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Related works:
Journal Article: New firm survival: the interdependence between regional externalities and innovativeness (2019)
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