New firm formation and employment growth: regional and business dynamics |
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Authors: | Rui Baptista Miguel Torres Preto |
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Affiliation: | 1.Department of Engineering and Management and IN+ Centre for Innovation, Technology and Policy Research, Instituto Superior Técnico,Technical University of Lisbon,Lisbon,Portugal;2.Department of Social and Decision Sciences,Carnegie Mellon University,Pittsburgh,USA;3.Max Planck Institute of Economics,Jena,Germany |
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Abstract: | This study examines differences in the effects of start-up rates on subsequent employment change. Two sources of such differences—types of start-ups and types of regions—are analyzed. We find that differences between knowledge-based and other start-ups dominate differences between highly agglomerated and modestly agglomerated regions. In particular, differences in the effects of new start-ups on subsequent employment growth between highly agglomerated and modestly agglomerated regions are greater for knowledge-based start-ups than for other types of start-ups. The results suggest that, while knowledge-based start-ups are likely to impart greater benefits on future employment than other types of start-ups, these benefits are greater when those start-ups locate in more agglomerated regions. |
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