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The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

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Abstract

We analyze the effect of industry, region, and time on new business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983–2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum efficient size and high numbers of entries. We find that regional characteristics play a rather important role and that introducing the regional dimension leads to considerable improvements of the estimation results. The significance of the regional dimension is also reflected in a remarkably high level of neighborhood effects.

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Correspondence to Michael Fritsch.

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Fritsch, M., Brixy, U. & Falck, O. The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis. Rev Ind Organ 28, 285–306 (2006). https://doi.org/10.1007/s11151-006-0018-4

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