The Determinants of Regional Variation in New Firm Formation
نویسندگان
چکیده
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 labor markets and localized knowledge spillovers.
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