New Business Formation and Regional Development: A Survey and Assessment of the Evidence

70 Pages Posted: 6 Jun 2011

See all articles by Michael Fritsch

Michael Fritsch

University of Jena - School of Economics and Business Administration

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Date Written: May 1, 2011

Abstract

This paper reviews the current state of knowledge about the effect of new business formation on regional development. After a brief sketch of the origins of research on this issue, the main results of different lines of inquiry are discussed. Main issues are the development of start-up cohorts, the relative magnitude of direct and indirect effects, and results by type of entry and by industry, as well as differences in the effects that have been found for different types of regions. After interpreting the results based on a common framework, I put forward a number of important questions for further research and draw some conclusions for entrepreneurship policy.

Keywords: Entrepreneurship, new business formation, employment regional development

JEL Classification: L26, M13, O1, O18, R11

Suggested Citation

Fritsch, Michael, New Business Formation and Regional Development: A Survey and Assessment of the Evidence (May 1, 2011). DIW Berlin Discussion Paper No. 1127, Available at SSRN: https://ssrn.com/abstract=1858745 or http://dx.doi.org/10.2139/ssrn.1858745

Michael Fritsch (Contact Author)

University of Jena - School of Economics and Business Administration ( email )

Carl-Zeiss-Str. 3
D-07743 Jena
Germany

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