The Apple Doesn't Fall Far from the Tree: Location of Start-Ups Relative to Incumbents
36 Pages Posted: 8 Dec 2008
Date Written: December 2008
Abstract
New firm location decisions, relative to incumbents may be based on a choice between two types of advantages: natural advantages or those that arise from social embeddedness, the latter of which may particularly include knowledge spillovers. We analyze the relative importance of geographically bounded location factors based on data from 103 manufacturing industries across 327 West German and 111 East German districts. Our micro-geographic analysis reveals that the two parts of the country vary in their pattern of new firm location. In East ermany, only 5 percent of the industries reveal start-up localization patterns beyond what natural advantages would suggest compared to 40 percent in West Germany.
Keywords: entrepreneurship, location decision, natural advantages, local knowledge spillovers
JEL Classification: L26, R11, O18
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities
By Raffaele Paci and Stefano Usai
-
Creative Class and Regional Growth − Empirical Evidence from Eight European Countries
By Ron A. Boschma and Michael Fritsch
-
What Determines the Efficiency of Regional Innovation Systems?
By Michael Fritsch and Viktor Slavtchev