Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76714 
Year of Publication: 
2013
Series/Report no.: 
Kiel Working Paper No. 1842
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Although there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others.
Subjects: 
Entrepreneurship
Start-up complexity
Thick markets
Regional analysis
JEL: 
L26
D22
R12
M13
O31
Document Type: 
Working Paper

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