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Small Business Economics

, Volume 41, Issue 4, pp 865–885 | Cite as

Regional public research, higher education, and innovative start-ups: an empirical investigation

  • Michael Fritsch
  • Ronney Aamoucke
Article

Abstract

Based on detailed information about the regional knowledge base, particularly about universities, we find that regional public research and education have a strong positive impact on new business formation in innovative industries but not in industries classified as non-innovative. Measures for the presence and size of public academic institutions have more of an effect on the formation of innovative new businesses than indicators that reflect the quality of these institutions. We find relatively weak evidence for interregional spillovers of these effects. Our results clearly demonstrate the importance of localized knowledge and, especially, of public research for the emergence of innovative new businesses.

Keywords

New business formation Innovative start-ups Universities Regional knowledge 

JEL Classifications

L26 L60 L80 O18 R12 R30 

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.School of Economics and Business AdministrationFriedrich Schiller University JenaJenaGermany

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