The persistence of regional new business formation-activity over time: assessing the potential of policy promotion programs

Michael Fritsch () and Pamela Mueller

No 2005/01, Freiberg Working Papers from TU Bergakademie Freiberg, Faculty of Economics and Business Administration

Abstract: We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather pathdependent so that changes are relatively small. The main factors determining the level of regional start-ups are innovation and entrepreneurship. These factors also seem to be responsible for changes in the level of regional new business formation. In addition, unemployment plays a role. Steering innovation and creating an entrepreneurial atmosphere could be an appropriate starting point for policy measures that try to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run.

Keywords: New businesses; entrepreneurship; growth regimes; time lags; Regionalentwicklung; Unternehmensgründungen; Entrepreneurship; Wachstumsregime; Time Lags (search for similar items in EconPapers)
JEL-codes: M13 O1 O18 R11 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs (2007)
Working Paper: The Persistence of Regional New Business Formation-Activity over Time - Assessing the Potential of Policy Promotion Programs (2005)
Working Paper: The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tufwps:200501

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