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The determinants of regional variation in new firm formation

Armington, Catherine and Acs, Zoltan J. (2002) The determinants of regional variation in new firm formation. Regional Studies, 36 (1). pp. 33-45. ISSN 0034-3404

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Identification Number: 10.1080/00343400120099843

Abstract

While much of the literature on new firm formation in the 1980s was motivated by high levels of unemployment, much of the focus on new firm start-ups today is motivated by high technology. Using a new database we examine the role of human capital, training and education, and entrepreneurial environment on new firm formation. We find significant differences in new firm formation rates from industrial regions to technologically progressive regions. Variations in firm birth rates are explained by industrial density, population and income growth. These results are consistent with thick labour markets and localized knowledge spillovers.

Item Type: Article
Official URL: http://www.tandfonline.com/loi/cres20#.U0v2MV9wbyA
Additional Information: © 2002 Regional Studies Association
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Management
Date Deposited: 14 Apr 2014 15:00
Last Modified: 14 Apr 2014 15:00
URI: http://eprints.lse.ac.uk/id/eprint/56537

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