nep-ent New Economics Papers
on Entrepreneurship
Issue of 2006‒06‒17
ten papers chosen by
Marcus Dejardin
Facultes Universitaires Notre-Dame de la Paix

  1. Regional patterns and determinants of new firm formation and survival in western Germany By Brixy, Udo; Grotz, Reinhold
  2. When Do Employees Leave Their Job for Entrepreneurship: Evidence from Linked Employer-Employee Data By Ari Hyytinen; Mika Maliranta
  3. Restart-Performance and the Returns of Previous Self-Employment By Georg Metzger; Michaela Niefert
  4. How fast do newly founded firms mature? : empirical analyses on job quality in start-ups By Brixy, Udo; Kohaut, Susanne; Schnabel, Claus
  5. Regulatory Barriers and Entry in Developing Economies By John Bennett; Saul Estrin
  6. The impact of financial constraints on innovation : evidence from french manufacturing firms. By Frédérique Savignac
  7. Uddannelse i Entrepreneurship - Universiteternes nye udfordring. En ramme til forståelse og udvikling af entrepreneurielle universitetsmiljøer By Blenker, Per; Dreisler, Poul
  8. Maintaining Switzerland's Top Innovation Capacity By Florence Jaumotte
  9. Multi-Product Firms and Product Switching By Andrew B. Bernard; Stephen J. Redding; Peter K. Schott
  10. Evidence on the Geographic Concentration of German Industries: Do High-Tech Clusters Really Matter? By Björn Alecke; Christoph Alsleben; Frank Scharr; Gerhard Untiedt

  1. By: Brixy, Udo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Grotz, Reinhold
    Abstract: "There is a large body of literature on the determinants of regional variation in new firm formation. In contrast there are few articles on the spatial differences in new firm survival. Using panel data we analyse both items for 74 western German regions over a ten-year period. The positive relationship between entry and exit which is often stated suggests a negative correlation between entry and survival. On the other hand, however, it seems convincing that regions with high birth rates should also have high survival rates, because a favourable environment for the founding of new firms should also be encouraging for the development of these firms. However, an analysis of both rates for 74 western German regions over a ten-year period reveals the existence of a negative relationship in general. This means that the survival rates are below average in regions with high birth rates. Despite this overall correlation, however, it is shown that the spatial pattern of a combination of both rates is complex, and all types of possible relationships exist. With a multivariate panel analysis we study the factors that influence regional birth and survival rates using the same set of independent variables. It is shown that in the service sector most variables literally work in opposite directions in the birth and survival rates models. But this does not hold for the manufacturing sector. This can be rated as evidence for the 'supportive environment thesis'. The reason for this is a completely different outcome of the estimated birth rates models for both industry sectors, whereas there are only minor differences in the estimated survival rate models. We can therefore deduce firstly that the two industries have different requirements for their 'seed bed' but not for their further successful development; and secondly, that the spatial structures which increase the number of newly founded businesses in the service sector are detrimental to the survival rates of newly founded firms." (author's abstract, IAB-Doku) ((en))
    Keywords: Unternehmensgründung, regionale Disparität, Unternehmenserfolg, Wirtschaftszweige, Westdeutschland, Bundesrepublik Deutschland
    JEL: R11 J23 L25 M13
    Date: 2006–04–27
  2. By: Ari Hyytinen; Mika Maliranta
    Keywords: entrepreneurship, occupation choice, mobility
    JEL: G14 G31 G32
    Date: 2006–06–05
  3. By: Georg Metzger; Michaela Niefert
    Date: 2006–06
  4. By: Brixy, Udo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Kohaut, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Schnabel, Claus
    Abstract: "Using a linked employer-employee data set for Germany, this paper analyzes labour fluctuation and wage setting in a cohort of newly founded and other establishments from 1997 to 2001. We show empirically that start-ups tend to have higher labour turnover rates, ceteris paribus. Moreover, bargaining coverage rates and wages in new firms are lower than in similar incumbent firms. Both the excess labour fluctuation and the wage differential are shown to decline and become insignificant over time as the newly founded firms mature. Our results imply that it takes a new firm only a few years to become an incumbent firm." (author's abstract, IAB-Doku) ((en))
    Keywords: Unternehmensgründung, Unternehmensentwicklung
    JEL: D21 J30 J63
    Date: 2005–01–13
  5. By: John Bennett (Brunel University); Saul Estrin (London Business School and IZA Bonn)
    Abstract: We model entry by entrepreneurs into new markets in developing economies with regulatory barriers in the form of licence fees and bureaucratic delay. Because laissez faire leads to ‘excessive’ entry, a licence fee can increase welfare by discouraging entry. However, in the presence of a licence fee, bureaucratic delay creates a strategic opportunity, which can result in both greater entry by first movers and a higher steady-state number of firms. Delay also leads to speculation, with entrepreneurs taking out licences to obtain the option of immediate entry if they later observe the industry to be profitable enough.
    Keywords: entry, entry barriers, developing economy
    JEL: L50 O14
    Date: 2006–05
  6. By: Frédérique Savignac (CREST et Centre d'Economie de la Sorbonne)
    Abstract: This paper examines the impact of financial constraints on innovation for established firms. We make use of a qualitative indicator of the existence of financial constraints based on firms' own assessment obtained thanks to a French specific survey. Thus, the existence of financial constraints for innovation is measured by a direct indicator whereas previous studies rely on proxies (like the cash-flow sensitivity) subject to interpretation problems. The descriptive analysis of balance sheet structures reveals that innovative firms without financial constraints have the best profile in terms of economic performances, financing structure and risk whereas non innovative firms facing financial constraints have the poorest profile. From the econometric point of view, the probabilities of implementing innovative projects and of facing financial constraints are simultaneously estimated by a recursive bivariate probit model to account for the endogeneity of the financial constraint variable. We then find that firms having innovative projects face financial constraints that significantly reduce the likelihood that they implement their innovative investment. The probability of facing financing constraints is explained by firms' ex ante financing structure and economic performances, by industry sector and it decreases with firms' size.
    Keywords: Innovation, financing constraints, recursive bivariate probit.
    JEL: G31 C35 O31
    Date: 2006–04
  7. By: Blenker, Per (Department of Organisation and Management, Aarhus School of Business); Dreisler, Poul (Department of Organisation and Management, Aarhus School of Business)
    Abstract: No abstract
    Keywords: No keywords;
    Date: 2006–06–01
  8. By: Florence Jaumotte
    Abstract: Despite some weakening in the 1990s, partly due to sluggish trend growth, the Swiss innovation performance has been very strong. There are, however, areas in which policy reforms could strengthen innovation further and help Switzerland maintain its lead in the face of a changing global environment. Boosting competition, simplifying administrative burdens and reforming the bankruptcy law would go a long way towards stimulating the innovativeness of small enterprises in sheltered services sectors, which becomes more crucial to sustaining high domestic innovation in a context where large firms are increasingly mobile. On the other hand,the growing knowledge economy and the increasing competition from emerging countries in skill-intensive activities press for further upgrading the vocational education system and increasing the efficiency of the university system. Regarding innovation-specific policies, budget spending priorities on education and research should be better protected and more resources devoted to bridge the gap between fundamental research and the market, especially through the activities of the Commission for Technology and Innovation. This Working Paper relates to the 2006 OECD Economic Survey of Switzerland ( <P>Préserver le haut niveau des capacités d?innovation de la Suisse Nonobstant une certaine détérioration durant les années 1990 liée en partie à une croissance tendencielle faible, la performance de la Suisse en matière d'innovation a été très bonne. Dans certains domaines cependant, des réformes permettraient d'encore renforcer cette performance et d'aider la Suisse à préserver sa position de leader malgré les changements qui s'opèrent dans l'environnement international. Ainsi, une intensification de la concurrence, accompagnée d'un allègement des charges administratives et d'une réforme du droit des faillites contribueraient largement à stimuler la capacité d'innovation des petites entreprises opérant dans les secteurs de services abrités, condition importante pour maintenir un niveau intérieur d'innovation élevé dans un contexte où les grandes entreprises sont de plus en plus mobiles. D'autre part, le développement de l'économie du savoir et la concurrence toujours plus grande des pays émergents dans les activités qualifiées plaident pour un renforcement du système d'education professionnelle et une amélioration de l'efficience du système universitaire. Concernant les politiques spécifiques d'innovation, il faudrait s'efforcer de mieux satisfaire les priorités des dépenses budgétaires en matière d'éducation et de recherche ainsi que d'accroître les ressources pour combler le fossé entre recherche fondamentale et le marché, surtout au travers des activités de la Commission pour la Technologie et l'Innovation. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la Suisse, 2006 (
    Keywords: Switzerland, Suisse, venture capital, capital-risque, innovation, innovation, product market competition, concurrence sur les marchés de produits, tertiary education, éducation tertiaire, patents, scientists and engineers, public research organisations, brevets, scientifiques et ingénieurs, R&D, R&D, organisme de recherche public, recherche fondamentale, liens entre secteur privé et universités, charges administratives, droit des faillites, double taxation, basic research, business-academic links, administrative burdens, bankruptcy law, double taxation
    JEL: I2 O3 O52
    Date: 2006–05–31
  9. By: Andrew B. Bernard; Stephen J. Redding; Peter K. Schott
    Abstract: This paper examines the frequency, pervasiveness and determinants of product switching among U.S. manufacturing firms. We find that two-thirds of firms alter their mix of five-digit SIC products every five years, that one-third of the increase in real U.S. manufacturing shipments between 1972 and 1997 is due to the net adding and dropping of products by survivors, and that firms are more likely to drop products which are younger and have smaller production volumes relative to other firms producing the same product. The product-switching behavior we observe is consistent with an extended model of industry dynamics emphasizing firm heterogeneity and self-selection into individual product markets. Our findings suggest that product switching contributes towards a reallocation of economic activity within firms towards more productive uses.
    JEL: D21 E23 L11 L60
    Date: 2006–06
  10. By: Björn Alecke; Christoph Alsleben; Frank Scharr; Gerhard Untiedt
    Abstract: The agglomeration of industries has received much interest both in empirical and theoretical work in recent time. Especially in Germany politicians became inspired by the notion of high-technology industry clusters and German regional policy has seen a wave of initiatives aiming at the formation of such clusters. This papers explorers in a systematic w ay the geographic concentration of German manufacturing industries and relates it to industry characteristics and agglomeration forces proposed by theory. The main finding is that there is no general relationship between agglomeration and R&D or high-technology related business which suggests that hope put in the fast and effective development of "high-tech" clusters might be disappointed.

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