Persistence and change of regional new business formation in the national league table
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We investigate persistence and change of regional new business formation in West Germany over a period of 30 years. Our indicator is the position of a region in the national ranking. We confirm the role of several sources of this persistence, namely, persistence in regional determinants of new business formation and path dependence in new business formation activity. The results for the role of a distinct regional culture of entrepreneurship are, however, ambiguous. Main factors that are related to changes in the national ranking are the employment share in small businesses, the share of manufacturing employment and a relatively low regional wage level. R&D activities are also conducive for new business formation but become effective only with a time lag.
KeywordsEntrepreneurship New business formation Economic development Regional growth regimes
JEL classificationL26 R11 M13 J23
We are particularly grateful to Udo Brixy, Georgios Fotopoulos, Francesca Melillo, David J. Storey, Alina Sorgner, Michael Wyrwich and three anonymous referees for helpful comments and suggestions. Financial support from the German Research Foundation (DFG RTG 1411) is gratefully acknowledged.
Compliance with ethical standards
The work of author Sandra Kublina on this paper benefitted from a Grant of the German Research Foundation (DFG); Grant no. DFG RTG 1411.
Conflict of interest
The authors declare that they have no conflict of interest.
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