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Changes in Regional Firm Founding Activities: A Theoretical by Dirk Fornahl

By Dirk Fornahl

Of curiosity to commercial and nearby economists in addition to these operating in company colleges, this e-book offers an in-depth research of the explanations and determinants of establishment production. the writer, dependent on the Max Planck Institute - one of many top centres for evolutionary economics - using a multi-disciplinary strategy analyzes the subject in accordance ro a extensive tripartite framework, emphasizing:

  • regional determinants
  • industrial determinants
  • individual determinants.

An worthy source, this publication is an invaluable addition to the bookshelves of specialists within the box of choice making, in either the private and non-private area.

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Additional info for Changes in Regional Firm Founding Activities: A Theoretical Explanation and Empirical Evidence (Routledge Studies in Global Competition)

Example text

Thus, there exists a link between unemployment and firm foundings but this link is influenced by opportunity perception and evaluation processes. We have to conclude that the effect of unemployment as a push-factor is unclear, whereas a worsening of the individual situation and dissatisfaction probably has a positive effect on firm foundings. Thus, even given a relatively good economic situation, if the situation of certain individuals worsens or they become dissatisfied, they are more likely to consider the option of founding a firm.

G. 7 As a consequence, the relationship between time t and e2 shows similar characteristics as the relationship between time t and e1: the time at which a reaction of e2 appears is the same as the time at which e1 changes. g. an s-shaped development of e1 results in an s-shaped development of e2). Differences can emerge in the strength of the reaction, which depends on the intercept and the slope of the relationship between e1 and e2. For example, a jump to a higher level in human capital results in a proportional, but smaller, jump in the regional founding activities.

1994) found that there exists a positive correlation between the rate of unemployment and start-ups in the basic service industry; whereas Keeble and Walker (1994) concluded from their empirical analysis that unemployment has a negative effect on the manufacturing industry. It is necessary to include variables like the relevant industry and the qualification of the agents to evaluate the relationship between the push-factors and firm foundings. A mixing-up of all the agents, no matter which qualification they have, leads to unclear results.

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