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New Business Formation and Regional Development—A Survey and Assessment of the Evidence
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This monograph reviews the current state of knowledge about the effects of new business formation on regional development. These effects are diverse and include the creation and destruction of employment,
introduction of innovations, structural change, and increasing productivity, among others. Theory particularly emphasizes the role that some new businesses play in the diffusion of knowledge and innovation as
drivers of economic growth. I provide an explanatory approach that highlights the competitive challenge that start-ups pose to incumbent firms and discuss important implications. The overview of empirical
research particularly deals with the development of start-up cohorts, identification of different types of indirect effects and their magnitude, differences based on characteristics of entry, and regional variation. A
general conclusion is that the diverse indirect effects of new business formation on development are much more important than the growth effects created by newcomers. The diverse indirect effects of entry on development are currently less than fully understood. Finally, I draw conclusions for policy and put forward a number of important questions for further research.
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... Предполагается также, что новые фирмы потенциально успешнее на рынке. Для развитых стран показано, что каждое новое предприятие создает новые рабочие места и повышает занятость в тот же год; затем из-за конкуренции и ухода существующих фирм возможно снижение числа работников, но по мере развития новых фирм в течение нескольких лет (6-8) возникают дополнительные косвенные эффекты роста занятости, в том числе в смежных отраслях (Fritsch, Mueller 2008;Fritsch, Noseleit, 2013;Fritsch, 2013). Показано, что большее число частных предприятий ведет к росту самозанятости 3 (Li, Zhao, 2011). ...
... На основе предыдущих эмпирических исследований (Verheul et al., 2002;Acs, Armington, 2004;Van Stel, Storey, 2004;Fritsch, 2013;Stuetzer et al., 2018;Robson, 1998;Li, Zhao, 2011; Баринова и др., 2018) и анализа тенденций мы предлагаем следующую эмпирическую модель: SME emplgr i,t = const + β 1 SMEempl (i,t-1) + β 2 MarketPullgr (i,t) + + β 3 UnemplPush (i,t-1) + β 4 SMEact (i,t) + β 5 Institutions (i,t) + + β 6 Humancapital (i,t) + β 7 Newtechnology (i,t) + + β 8 Struct (i,t) + β 9 Agglomeration (i,t) + ε (i,t) , где: i -регионы России (за исключением Крыма и Севастополя); t -2009-2018 гг.; SME empl_gr -рост занятости в секторе МСП; SMEempl t-1занятость в секторе МСП в предыдущий год; MarketPullgr -рост доступных рынков, спроса; UnemplPush -предложение труда на рынке; SMEact -различные оценки предпринимательской активности; Institutions -институциональные условия, деловой климат; Humancapitalоценки человеческого капитала; Newtechnology -влияние новых технологий; Struct -особенности структуры экономики и рынка труда; Agglomeration -агломерационные эффекты; ε -случайная ошибка. В таблице 1 приведены используемые переменные и гипотезы об их влиянии. ...
Земцов С.П., Царева Ю.В., Салимова Д.Р., Баринова В.А. Занятость в малом и среднем бизнесе в России: в поисках факторов роста. Вопросы экономики. 2021.№12. С. 66-93. https://doi.org/10.32609/10.32609/0042-8736-2021-12-66-93 ||| В периоды кризисов обостряются дискуссии об источниках занятости, одним из которых может выступать предпринимательская деятельность. Рост занятости в предпринимательском секторе заявлен в качестве одной из национальных целей до 2030 г., но для выбора и верификации мер поддержки требуется определить его исходные факторы. Предложена эконометрическая модель, где зависимой переменной выступает рост занятости в секторе малого и среднего предпринимательства (МСП) в регионах России. По результатам расчетов значим фактор создания новых компаний: одно новое предприятие в среднем создает 10 новых рабочих мест в малом и среднем бизнесе, а техно-логический стартап-около 60 через год. Рост занятости в последнее десяти-летие выше в регионах с растущими доходами населения, с хорошим доступом к банковскому капиталу и крупным рынкам, с низкими инвестиционными рисками. Повышение доступности интернета способствует, а огосударствление экономики и автоматизация производств препятствуют росту предпринимательского сектора. В аграрных регионах занятость в МСП растет, а в центрах добычи-падает. Усилия властей необходимо направить на снижение барьеров входа на рынок для новых компаний, на повышение доступа к капиталу, рынкам и интернету и стимулирование цифровизации бизнеса. ||| Zemtsov S.P., Tsareva Y.V., Salimova D.R., Barinova V.A. Small and medium-sized enterprises in Russia: In search of the employment growth factors. Voprosy Ekonomiki. 2021;(12):66-93. (In Russ.) https://doi.org/10.32609/10.32609/0042-8736-2021-12-66-93. During crises, discussions about the sources of employment intensify, including that of entrepreneurship. The growth of employment in the entrepreneurial sector is one of the national goals, which should be achieved up until 2030. However, the selection and verification of support measures requires the determination of the underlying growth factors. The paper proposes an econometric model, where the dependent variable is the growth of employment in the SME sector in the Russian regions over the previous decade. According to the results of the estimations, the creation of new companies is significant: one new enterprise creates on average 10 new jobs in small and medium-sized businesses, while a technological startup creates 60 new jobs next year. Employment growth in the last decade is higher in regions with growing incomes of the population, with good access to banking capital and large markets, and with low criminal risks. Increasing Internet accessibility contributes to the growth of the business sector; whereas nationalization of the economy is an obstacle. Employment is growing in SMEs in agricultural regions and decreasing in the centers of production. The efforts of the authorities should aim at lowering the barriers to market entry for the new companies, increasing access to capital, markets and the Internet, and stimulating the digitalization of the economy.
... Entrepreneurs facilitate economic development through labor, technologies, and capital. Numerous studies confirmed entrepreneurship as the main driver of economic growth and argue its contribution to employment opportunities (e.g., Naudé 2010; Chavis et al. 2011;Marcotte 2013;Fairlee and Chatterji 2013;Fritsch 2013;Hodges et al. 2015;Karimi et al. 2017). Entrepreneurs setting up new firms positively influence economic growth, when there are fewer legal, institutional, or cultural barriers. ...
Economic growth is a major goal pursued by public authorities but can be achieved with the involvement of several categories of stakeholders given the complexity of the phenomenon and the many influencing factors. In this research paper, the authors analyze specific current issues that are representative as influencers of economic growth. This study brings into focus the importance of education, particularly tertiary education, entrepreneurship skills, and innovation capacities of businesses. The objectives are (1) to find out if tertiary education leads to economic growth; (2) to examine if innovation is one of the promotors of economic growth; and (3) to discuss the impact of the dynamic of businesses (enterprise birth) on economic growth. The methodology used in this research is panel regression (static model) for a sample consisting of 30 European countries for the period 2003–2020. The main findings are associated with a positive influence of tertiary education on economic growth, whereas the two other variables, that of entrepreneurship and innovation, are found to be insignificant for this time period.
... Although research on EEs is still in its infancy, several empirical studies have shown how a virtuous EE facilitates a high level of entrepreneurship, thereby creating further value on the regional scale (Fritsch, 2013). For example, Mack and Mayer (2016) show how the few entrepreneurial ventures that began in Phoenix, Arizona, contributed to a virtuous EE based on visible success, a strong entrepreneurial culture, and supportive public policies. ...
The DIGITAL ENTREPRENEURSHIP INDICATOR (DEI), which combines individual and institutional data, is designed to chart the vitality of metropolitan areas in terms of digital entrepreneurship on a suburban scale. In this study, we apply it to the case of the Greater Paris Metropolitan area. Using geographically weighted regression, we explore the spatial heterogeneity of the effect of digital entrepreneurial ecosystems on the location quotient of information and communication technology firms with fewer than 10 employees. The results highlight a positive link between the DEI and the location quotient of small ICT firms. In particular, the aspects of both ATTitudes and CAPacities (i.e., urbanization economies, Human Development Index, density of incubators, accounting and financial services, and fiber optic coverage) appear to have a significant effect on a suburban scale. Acknowledgments We would like to thank Nadine Levratto and Marcus Dejardin for their careful reading of the manuscript and their critical contributions to the study 1. JEL codes: R12, L26, O31, P25
... One strand of the literature has identified new venture creation and entrepreneurship on the local level as a mechanism to pass the knowledge filter by filtering out the most promising ideas overlooked by others and to transform them into marketable products (Acs et al., 2014(Acs et al., , 2016Audretsch et al., 2016;Fritsch, 2013). There exists considerable empirical evidence confirming that knowledge spillovers and new venture creation play a fundamental role in forwarding innovations (Audretsch, 2014;Brown, 2016;Guerrero et al., 2015;Lehmann & Menter, 2018;Teece & Linden, 2017). ...
This study investigates the impact of both university spillovers and firms’ absorptive capacities on firms’ financial performance, using a multilevel approach. Considering internal firm characteristics as well as external regional characteristics, our results clearly show that university spillovers do not have a per se stimulating effect. It is the interaction between firms’ absorptive capacities and local university spillovers, which proves to have a positive and significant effect on firms’ economic performance. We further find that there is an optimal level of absorptive capacities, implying that ‘a more the better’ logic does not apply. Our findings give impetus to a call for more comprehensive public policy strategies. Policy makers have to balance the support provided to knowledge producing regional actors such as universities as well as knowledge exploiting actors such as knowledge-based firms to leverage local resources and ultimately create economic value within regional innovation systems by enabling efficient technology transfer processes.
Does the presence of specialist technological expertise, diversity across industries and the intensity of competition among existing firms in a location affect the rate at which new firms are attracted to an agglomeration? We construct three measures of these explanators including a novel measure of competitive dynamics and estimate a region-industry panel fixed-effects model using data on a national census of firms over a 15-year period. This extensive panel dataset of firms and regions, enables us to move beyond the comparative static analysis which has dominated the agglomeration literature for so long. We find local competitive intensity has a large positive effect on firm creation. Competition attracts, not repels. Technological specialisation is a moderate attractee, but diversity may merely lead to local congestion.
Entrepreneurial ecosystems (EEs) are viewed as the combination or interaction of elements producing shared innovative and cultural values that support entrepreneurial activities within a territory. The literature has mainly taken a static view of the concept and has analyzed these ecosystems at national or at NUTS-2 regional level. This paper proposes the NUTS-3 provincial level as a spatial unit for measuring EEs in a dynamic perspective and focuses on the Italian case using data for the 2000–2018 period. The choice of NUTS-3 provinces is supported by theoretical arguments and it is confirmed by empirical results, which show some degree of heterogeneity in the level of EEs across provinces and some spatial patterns that would have been ignored using larger spatial units. The temporal dimension also reveals some intra-distribution mobility in the cross-sectional values of the provincial EE index. The paper contributes to advancing the research on EEs, has implications for policymakers and practitioners, and suggests directions for future studies.
This review article sheds a light on the complex and hitherto under-researched relationship between geography and entrepreneurship. This relationship is considered to be interdependent. Both directions are discussed. The paper also describes the perspectives of both academic disciplines involved in regional entrepreneurship research, namely (geographically sensitive) economics and management studies on the one hand, and economic geography on the other. Based on a comprehensive overview of the theoretical and empirical literature on regional entrepreneurship, several research gaps are identified that could be helpful for designing future research. Some have strong relevance for government policy, which has recently paid much more attention to entrepreneurship than in the past (e.g. related to the entrepreneurial ecosystem approach), but which rather rarely has been considered in academic evaluations so far. This paper ends with a suggestion for an agenda for future regional entrepreneurship research. Digital transformation with its potential for a disruptive transformation of economies and societies will provide an excellent and, of course, a currently not well-understood research field for regional entrepreneurship research.
Das Kapitel behandelt die Theorie des Occupational Choice, mit der zu erklären versucht wird, wieso jemand als Unternehmer tätig ist, während andere in abhängiger Beschäftigung oder Arbeitslosigkeit bleiben. Dabei wird ein einfaches formales Grundmodell abgeleitet, das den Ausgangpunkt für diverse Erweiterungen bildet.
Im Modell des Occupational Choice (Kap. 4) kommt den unternehmerischen Fähigkeiten einer Person die Schlüsselrolle für die Wahl der Erwerbsform zu. In diesem Kapitel wird erläutert, worin unternehmerische Fähigkeiten bestehen und welche Faktoren zu ihrer Herausbildung beitragen. Behandelt werden insbesondere die für eine erfolgreiche Gründung erforderlichen Qualifikationen und Persönlichkeitsmerkmale. Dabei wird auch gefragt, welche Faktoren das Erkennen und Ergreifen von unternehmerischen Gelegenheiten (Opportunity Recognition) beeinflussen.
The contribution of this book is to join in the same volume a set of theoretical visions and empirical assessments by leading scholars about public policies towards entrepreneurship in Europe and how to rethink them. The book is divided in two parts: Part I – Entrepreneurship Policies – A European Framework; and Part II – Entrepreneurship Policy in Countries and Regions. In Part I various theoretical approaches are presented by prominent scholars from around the world. They point to the need for the European economy to be the subject of regional reorganization, based on concentrations of production activities with a strong component of knowledge and technology. This book appears at a particularly challenging time, in economic and social terms, when entrepreneurship and innovation assume particular strategic importance, inasmuch as endogenous growth should be considered by policy-makers and also by business-people and citizens as one of the driving forces that can catalyze regional economies. The Entrepreneurship Policy examples contained in Part II from European countries in Scandinavia, Iberia, Germany, Turkey and the UK explore the implications for research, practice and policy-making in those regions.
The process of knowledge production exhibits a very distinctive geography. This article argues that this geography is fundamental, not incidental, to the innovation process itself: that one simply cannot understand innovation properly if one does not appreciate the central role of spatial proximity and concentration in this process. The goal of this article is to demonstrate why this is true, and to examine how innovation systems at the subnational scale play a key part in producing and reproducing this uneven geography over time. This article addresses four key issues. First, it looks at the reason why location matters when it comes to innovative activity. Second, it turns to examine regional innovation systems, and the role played by them in generating and circulating new knowledge leading to innovation. Third, the article considers the relationship between regional systems of innovation and institutional frameworks at the national level. Finally, the relationship between local and global knowledge flows is examined.
'This ambitious book draws upon a wide variety of literature in developing a comprehensive theory of entrepreneurship, ranging from the discovery of entrepreneurial activities, to industry differences in entrepreneurial activity, to the organizing process. It represents a major contribution to the field.' - Arnold C. Cooper, Purdue University, US. 'Professor Scott Shane provides a deep and comprehensive discussion of the individual-opportunity nexus in entrepreneurship. Eschewing the usual approaches of either focusing exclusively on the individuals and their motivations and actions or focusing exclusively, almost always ex-post, on the economic potential of opportunities, Scott Shane fixes his gaze squarely on the nexus of the individual and the opportunity. It is this nexus that I believe is the building block for a better understanding of the entrepreneurial phenomenon.' - From the foreword by Sankaran Venkataraman. In the first exhaustive treatment of the field in 20 years, Scott Shane extends the analysis of entrepreneurship by offering an overarching conceptual framework that explains the different parts of the entrepreneurial process - the opportunities, the people who pursue them, the skills and strategies used to organize and exploit opportunities, and the environmental conditions favorable to them - in a coherent way.
This paper outlines the development of an entrepreneurial culture in the US Capitol region and the formation of a regional industrial cluster. The conditions that the literature associates with entrepreneurship lag rather than lead the development of the cluster. Supportive social capital, venture capital and entrepreneurial support services, as well as actively engaged research universities, are conditions that reflect the successful establishment of an entrepreneurial culture, built by the actions of pioneering entrepreneurs who often adapted to constructive crisis.
Jobs are created by births of new businesses, expansions of existing ones, and relocations of businesses into an economy. Conversely, jobs are destroyed by deaths and contractions of existing businesses, and outward relocations. To the extent that state and local policymakers directly address job creation and job destruction, they focus to a large extent on relocation - engaging in efforts to attract new businesses to a state or locality, and attempting to encourage existing businesses contemplating leaving to stay. However, the empirical evidence underlying this focus on relocation is virtually non-existent, as there has been no systematic evidence on the role of business relocation in job creation and destruction. This paper presents new evidence on the importance of each of these processes - births and deaths, expansions and contractions, and in- and out-migration - to employment growth (and decline). We use data from the National Establishment Time Series for California. The evidence indicates that births of new business establishments and especially new firms, and expansions of existing ones, coupled with their counterparts of deaths and contractions of existing establishments, are the prime determinants of employment growth. In contrast to the high profile accorded it by policymakers, business relocation plays a negligible role. The gross job flows (both positive and negative) from births, deaths, expansions, and contractions far outweigh those due to relocation. Moreover, in most years the net difference between expansions and contractions of existing businesses contribute by far the most to job growth.