The spatial distribution of new technology-based firms: Empirical results for West-Germany

Abstract.

The focus of the article is to shed some more light on the spatial distribution of new technology-based firms (NTBF) and to discuss location factors which may contribute to the explanation of the variation in the incidence of NTBF between the West-German districts (“Kreise”). Based on theoretical models explaining the location decisions of new firms, hypotheses are derived and tested in an empirical model. The regression results indicate strong correlations between the occurrence of NTBF and the proximity to Research and Development (R&D) facilities comprising universities, technical colleges and non-university institutes as well as private R&D. As expected, the impact of the various facilities varies with respect to their field of specialization, showing major positive correlations with respect to technical disciplines. Moreover, the estimates reveal out differences due to spatial characteristics such as infrastructure and other structural factors.