New firm formation by industry over space and time: a multi-level analysis for Germany

Fritsch, Michael; Falck, Oliver (2002): New firm formation by industry over space and time: a multi-level analysis for Germany. In: From industry to advanced services : perspectives of European metropolitan regions ; ERSA 2002 Dortmund. Dortmund: ERSA.

Abstract

We apply a multi-level approach to analyze the effect of three groups of determinants on new firm formation simultaneously: industry, location and changes over time. The data are for West Germany and cover the 1983-97 period. Our analysis indicates, that innovation activities and the technological regime play a significant role for new firm formation processes. There are also considerable differences with regard to the impact of a number of variables on startups between manufacturing and the service sector. Changes in demand are conducive for new firm formation while a high level of unemployment in a region obviously makes a relatively uncomfortable environment for start-ups. JEL classification: D21, L10, R10 Keywords: New firm formation, industrial economics, regional economics, entrepreneurship.

• Item Type: Book Section
• Faculties: Economics; Economics > Chairs > CESifo-Professorship for Empirical Innovation Economics
• Subjects: 300 Social sciences > 330 Economics
• Place of Publication: Dortmund