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The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation

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Abstract

This study attempts to reveal how macroeconomic and technology policies that encompass the opportunity and individual drivers of entrepreneurship explain the dynamics of new firm formation in a country. To do so we rely on the Schumpeterian, industrial organization, and labor economics traditions of entrepreneurship, and performed an exploratory test with longitudinal U.S. data from 1968 to 1993. The results of this study suggest that R&D investments, patents, economic concentration, pro-competition policy, and labor mobility are important areas in which government policy can influence the intensity of new firm formation.

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Authors and Affiliations

  1. Lee Kong Chian School of Business, Singapore Management University, 469 Bukit Timah Road, 259756, Singapore

    Young Rok Choi

  2. Lally School of Management and Technology, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY, 12180-3590, USA

    Phillip H. Phan

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  1. Young Rok Choi
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  2. Phillip H. Phan
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Correspondence to Young Rok Choi.

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Choi, Y.R., Phan, P.H. The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation. Small Bus Econ 26, 493–503 (2006). https://doi.org/10.1007/s11187-005-5989-2

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