Sources of persistence in regional start-up rates-evidence from Sweden

Martin Andersson*, Sierdjan Koster

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

134 Citations (Scopus)

Abstract

This article assesses the spatial-temporal persistence of a dynamic phenomenon: start-ups. Two mechanisms that explain persistence in start-up rates are distinguished: (i) determinants of start-ups that are spatially 'sticky' and durable and (ii) path dependence in start-up activities in the form of a response mechanism between previous and current start-up activities. A dynamic panel analysis of the relationship between lagged start-up rates and current start-up rates confirms that both effects are important in explaining persistence. The second mechanism implies a regional dimension in persistence, such that regions with high levels of start-up rates will exhibit stronger persistence. We find empirical evidence of this using quantile regression techniques.

Original languageEnglish
Pages (from-to)179-201
Number of pages23
JournalJournal of Economic Geography
Volume11
Issue number1
DOIs
Publication statusPublished - Jan-2011

Keywords

  • Entrepreneurship
  • persistence
  • path dependence
  • regional start-up dynamics
  • PANEL-DATA
  • QUANTILE REGRESSION
  • FIRM FORMATION
  • ENTREPRENEURSHIP
  • MODELS
  • DEPENDENCE
  • VARIABLES
  • EVOLUTION
  • GROWTH
  • TIME

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