Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31725 
Year of Publication: 
2008
Series/Report no.: 
Jena Economic Research Papers No. 2008,091
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
We use longitudinal data over a decade on start-ups and employment in Swedish regions and analyze the effect of start-ups on subsequent employment growth. We extend previous analyses by examining the influence of regional start-ups in a sector on regional employment growth in the same sector and on other sectors. We find differences between different types of start-ups. Knowledge-intensive start-ups seem to have larger effects on the regional economy. In particular, start-ups in high-end services have significant negative impacts on employment in other sectors but a positive long-run impact. This is consistent with the idea that start-ups are a vehicle for changes in the composition of regional industry. Moreover, our results illustrate that the known S-shaped pattern can be attributed to different effects that start-ups in a sector have on employment change in the same sector and in others.
Subjects: 
Entrepreneurship
employment growth
regional development
start-ups
JEL: 
J23
M13
O52
Document Type: 
Working Paper

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