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Regional knowledge, entrepreneurial culture, and innovative start-ups over time and space―an empirical investigation

We investigate the role of entrepreneurship culture and the historical knowledge base of a region on current levels of new business formation in innovative industries. The analysis is for German regions and covers the time period 1907–2014. We find a pronounced positive relationship between high levels of historical self-employment in science-based industries and new business...

Music in the air: estimating the social return to cultural amenities

If being around smart people makes us smarter and more productive, what can regions do to attract smart people? This paper considers endogenous cultural amenities as a location factor for high-skilled workers. To overcome selection in the provision of cultural amenities, we exploit variation in contemporaneous cultural amenities that is explained by the path-dependence of...


E OF OCCUPATIONAl ENv IRONmENTS FOR ENTREPRENEURIAl ENTRy Alina Rusakova, Friedrich-Schiller-University Jena, Germany Michael Fritsch, Friedrich-Schiller-University Jena, Germany Principal Topic

Why does the effect of new business formation differ across regions?

We investigate regional differences in the effect of new business formation on employment growth in West Germany. We find an inverse U-shaped relationship between the level of start-up activity and employment change. The main variables that shape the employment effects of new businesses in a region are population density, the share of medium-skilled workers, the amount of...

How does industry specialization affect the efficiency of regional innovation systems?

Michael Fritsch 0 Viktor Slavtchev 0 JEL Classification 0 0 M. Fritsch German Institute of Economic Research (DIW-Berlin) , 10108 Berlin, Germany This study analyzes the relationship between the

How does new business formation affect regional development? Introduction to the special issue

This paper gives an overview of the empirical research on the effects of new business formation on regional development and introduces the contributions to this special issue. The effects of new businesses on regional development emerge over a longer time-period of up to ten years. A main focus of the contributions to this special issue is on the distribution of these effects...

The effect of new business formation on regional development over time: the case of Germany

We investigate the effects of new business formation on employment change in German regions. A special focus is on the lag-structure of this effect and on differences between regions. The different phases of the effects of new business formation on regional development are relatively pronounced in agglomerations as well as in regions with a high-level of labor productivity. In...