Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55300 
Year of Publication: 
2011
Series/Report no.: 
DIW Discussion Papers No. 1127
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper reviews the current state of knowledge about the effect of new business formation on regional development. After a brief sketch of the origins of research on this issue, the main results of different lines of inquiry are discussed. Main issues are the development of start-up cohorts, the relative magnitude of direct and indirect effects, and results by type of entry and by industry, as well as differences in the effects that have been found for different types of regions. After interpreting the results based on a common framework, I put forward a number of important questions for further research and draw some conclusions for entrepreneurship policy.
Subjects: 
entrepreneurship
new business formation
employment regional development
JEL: 
L26
M13
O1
O18
R11
Document Type: 
Working Paper

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