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Erscheinungsjahr: 
2009
Schriftenreihe/Nr.: 
Jena Economic Research Papers No. 2009,070
Verlag: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Zusammenfassung: 
Empirical analyses suggest that the employment creating effect of start-ups is highest in regions with a low level of new business formation and that an increase in the regional start-up rate beyond a certain level may lead to negative employment effect. In explaining these results, we assume that the average quality of regional start-ups decreases with the number of start-ups, while the costs of the induced resource reallocation increase. Our model implies that it is not the number of start-ups but their quality that is decisive for their effect on economic development. Therefore, a policy aiming at stimulating economic growth through entrepreneurship should focus on high-quality start-ups.
Schlagwörter: 
Entrepreneurship
new business formation
regional development
entrepreneurship policy
JEL: 
L26
M13
O1
O18
R11
Dokumentart: 
Working Paper

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