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Why does the effect of new business formation differ across regions

Bibliographic Data

ID14867904
AuthorsMichael Fritsch (0000-0003-0337-4182, Carl Zeiss (Germany), corresponding author), Alexandra Schroeter (Friedrich Schiller University Jena)
Year2011
Volume36
Issue4
Pages383-400
Publication date2011-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-009-9256-9
OpenAlexW1497876633
LanguageEN
Citations received23
References cited53

We investigate regional differences in the effect of new business formation on employment growth in West Germany. We find an inverse U-shaped relationship between the level of start-up activity and employment change. The main variables that shape the employment effects of new businesses in a region are population density, the share of medium-skilled workers, the amount of innovation activities as measured by the proportion of research and development (R&D) employees, and an entrepreneurial character of the regional technological regime. In contrast, a high share of small-business employment has a negative influence on the employment effect of start-ups. Other indicators for education, innovation activity, and labor productivity do not prove to be statistically significant

Business · Demographic economics · Economic geography · Economic growth · Economics · Labour economics · Manufacturing sector · Population · Unemployment · Unemployment rate · Demography · Firm Innovation and Growth · Innovation Policy and RD · Labor market dynamics and wage inequality

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Unique citing works23
Citations per year1,53
Citation span2011 - 2025 (15)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 23

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