Regional Opportunities and Policy Initiatives for New Venture Creation

22 Pages Posted: 29 Jan 2008

See all articles by I. Verheul

I. Verheul

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

Martin A. Carree

University of Maastricht - Department of Organization & Strategy

Enrico Santarelli

University of Bologna - Department of Economics

Date Written: 17 2007, 12

Abstract

This paper investigates the determinants of new venture creation across industries and locations for 103 Italian provinces between 1997 and 2003. We allow for differences in regional opportunities across industries and investigate the impact of a range of factors on entrepreneurship in different industries: manufacturing, retailing and wholesaling, hotels and restaurants. Our results show that wage costs deter entry in manufacturing and that regions with industrial districts are characterized by higher start-up rates. Firm entry in commercial sectors appears higher in large cities and areas with strong economic progress. For hotels and restaurants we find that tourism positively influences new firm formation. In terms of policy we do not find a significant effect of recently introduced regional laws promoting new firm formation.

Keywords: venture creation, policy initiatives, Italian provinces

JEL Classification: M13, O32, M, L26, P25

Suggested Citation

Verheul, Ingrid and Carree, Martin A. and Santarelli, Enrico, Regional Opportunities and Policy Initiatives for New Venture Creation (17 2007, 12). ERIM Report Series Reference No. ERS-2007-092-ORG. Available at SSRN: https://ssrn.com/abstract=1088216

Ingrid Verheul (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burgemeester Oudlaan 50
3062 PA Rotterdam, NL 3062 PA
Netherlands
+31 10 4081398 (Phone)
+31 10 4089146 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Martin A. Carree

University of Maastricht - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Enrico Santarelli

University of Bologna - Department of Economics ( email )

Piazza Scaravilli, 2
I-40126 Bologna
Italy
+39 051 2098487 (Phone)

HOME PAGE: http://www2.dse.unibo.it/santarel

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