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The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation

Author

Listed:
  • Young Choi
  • Phillip Phan

Abstract

This study attempts to reveal how macroeconomic and technology policies that encompass the opportunity and individual drivers of entrepreneurship explain the dynamics of new firm formation in a country. To do so we rely on the Schumpeterian, industrial organization, and labor economics traditions of entrepreneurship, and performed an exploratory test with longitudinal U.S. data from 1968 to 1993. The results of this study suggest that R&D investments, patents, economic concentration, pro-competition policy, and labor mobility are important areas in which government policy can influence the intensity of new firm formation. Copyright Springer 2006

Suggested Citation

  • Young Choi & Phillip Phan, 2006. "The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation," Small Business Economics, Springer, vol. 26(5), pages 493-503, June.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:5:p:493-503
    DOI: 10.1007/s11187-005-5989-2
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    More about this item

    Keywords

    entrepreneurial policy; government; new firm formation; L50 (Regulation and Industrial Policy-General); M13 (Entrepreneurship) ; M20 (Business Economics-General);
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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