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Brixy, Udo; Falck, Oliver und Fritsch, Michael (2006): The effect of industry, region, and time on new business survival - A multi-dimensional analysis. In: Review of Industrial Organization, Bd. 28, Nr. 3: S. 285-306

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Abstract

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

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