IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v48y2014i8p1353-1370.html
   My bibliography  Save this article

The Influence of Industry Mix on Regional New Firm Formation in the United States

Author

Listed:
  • Henry Renski

Abstract

Renski H. The influence of industry mix on regional new firm formation in the United States, Regional Studies . Per capita rates of entry are commonly used to measure the regional entrepreneurial climate. Yet entry rates vary widely by industry and tend to mirror existing regional specializations. Without controlling for industry mix, factors associated with regional differences in entry may describe the industry base rather than explain variations in entrepreneurial climate. This study finds that although most of the factors commonly associated with the regional entrepreneurial climate remain significant after purging the data of industry-mix effects, others - namely educational attainment, homeownership, university research and development, and unemployment - are contingent upon industry structure.

Suggested Citation

  • Henry Renski, 2014. "The Influence of Industry Mix on Regional New Firm Formation in the United States," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1353-1370, August.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:8:p:1353-1370
    DOI: 10.1080/00343404.2012.722202
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2012.722202
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2012.722202?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Woodward, Douglas & Figueiredo, Octavio & Guimaraes, Paulo, 2006. "Beyond the Silicon Valley: University R&D and high-technology location," Journal of Urban Economics, Elsevier, vol. 60(1), pages 15-32, July.
    2. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
    3. Werner Bönte & Oliver Falck & Stephan Heblich, 2009. "The Impact of Regional Age Structure on Entrepreneurship," Economic Geography, Clark University, vol. 85(3), pages 269-287, July.
    4. Sam Youl Lee & Richard Florida & Zoltan J. Acs, 2008. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 13, pages 171-182, Edward Elgar Publishing.
    5. Paul Davidson Reynolds, 2007. "Entrepreneurship in The United States," International Studies in Entrepreneurship, Springer, number 978-0-387-45671-3, November.
    6. Michael Fritsch & Oliver Falck, 2007. "New Business Formation by Industry over Space and Time: A Multidimensional Analysis," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 157-172.
    7. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    8. Westlund, Hans & Bolton, Roger, 2003. "Local Social Capital and Entrepreneurship," Small Business Economics, Springer, vol. 21(2), pages 77-113, September.
    9. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
    10. Joshua Drucker & Harvey Goldstein, 2007. "Assessing the Regional Economic Development Impacts of Universities: A Review of Current Approaches," International Regional Science Review, , vol. 30(1), pages 20-46, January.
    11. Drucker, Joshua & Feser, Edward, 2012. "Regional industrial structure and agglomeration economies: An analysis of productivity in three manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 1-14.
    12. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    13. Attila Varga & Luc Anselin & Zoltan J. Acs, 2000. "research notes and comments: Geographic and sectoral characteristics of academic knowledge externalities," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(4), pages 435-443.
    14. Bruce A. Kirchhoff & Scott L. Newbert & Iftekhar Hasan & Catherine Armington, 2007. "The Influence of University R & D Expenditures on New Business Formations and Employment Growth," Entrepreneurship Theory and Practice, , vol. 31(4), pages 543-559, July.
    15. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    16. Acs,Zoltan J. & Armington,Catherine, 2011. "Entrepreneurship, Geography, and American Economic Growth," Cambridge Books, Cambridge University Press, number 9781107402539, September.
    17. Henry Renski, 2011. "External economies of localization, urbanization and industrial diversity and new firm survival," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 473-502, August.
    18. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economic Reports 33955, United States Department of Agriculture, Economic Research Service.
    19. Niels Bosma & Erik Stam & Veronique Schutjens, 2011. "Creative destruction and regional productivity growth: evidence from the Dutch manufacturing and services industries," Small Business Economics, Springer, vol. 36(4), pages 401-418, May.
    20. Erik Stam, 2007. "Why Butterflies Don’t Leave: Locational Behavior of Entrepreneurial Firms," Economic Geography, Taylor & Francis Journals, vol. 83(1), pages 27-50, January.
    21. Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 147-167, August.
    22. Olav Sorenson, 2005. "Social networks and industrial geography," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 55-69, Springer.
    23. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    24. Luc Anselin & Attila Varga & Zoltan Acs, 2008. "Local Geographic Spillovers Between University Research and High Technology Innovations," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 9, pages 95-121, Edward Elgar Publishing.
    25. Niels Bosma & Veronique Schutjens, 2011. "Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 711-742, December.
    26. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    27. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    28. Robert J. Stimson & Roger R. Stough & Brian H. Roberts, 2006. "Regional Economic Development," Springer Books, Springer, edition 0, number 978-3-540-34829-0, December.
    29. Edward Feser & Henry Renski & Harvey Goldstein, 2008. "Clusters and Economic Development Outcomes," Economic Development Quarterly, , vol. 22(4), pages 324-344, November.
    30. Peter Johnson, 2004. "Differences in Regional Firm Formation Rates: A Decomposition Analysis," Entrepreneurship Theory and Practice, , vol. 28(5), pages 431-446, September.
    31. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    32. Bania, Neil & Eberts, Randall W & Fogarty, Michael S, 1993. "Universities and the Startup of New Companies: Can We Generalize from Route 128 and Silicon Valley?," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 761-766, November.
    33. Love, Lisa L. & Crompton, John L., 1999. "The Role of Quality of Life in Business (Re)Location Decisions," Journal of Business Research, Elsevier, vol. 44(3), pages 211-222, March.
    34. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    35. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
    36. Karl Wennberg & Göran Lindqvist, 2010. "The effect of clusters on the survival and performance of new firms," Small Business Economics, Springer, vol. 34(3), pages 221-241, April.
    37. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988. "Patterns of Firm Entry and Exit in U.S. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 495-515, Winter.
    38. Zoltán J. Ács & Catherine Armington & Ting Zhang, 2015. "The determinants of new-firm survival across regional economies: The role of human capital stock and knowledge spillover," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 18, pages 344-368, Edward Elgar Publishing.
    39. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2000. "Social Capital and Economic Growth: A County-Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(3), pages 565-572, December.
    40. Robert A. Leone & Raymond Struyk, 1976. "The Incubator Hypothesis: Evidence from Five SMSAs," Urban Studies, Urban Studies Journal Limited, vol. 13(3), pages 325-331, October.
    41. Vinod Sutaria & Donald A. Hicks, 2004. "New firm formation: Dynamics and determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 241-262, June.
    42. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    43. Storey, David J & Johnson, Steven G, 1987. "Regional Variations in Entrepreneurship in the U.K," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(2), pages 161-173, May.
    44. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    45. Hector Rocha & Rolf Sternberg, 2005. "Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany," Small Business Economics, Springer, vol. 24(3), pages 267-292, February.
    46. Jonghoon Bae & Jun Koo, 2009. "The nature of local knowledge and new firm formation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(3), pages 473-496, June.
    47. Zoltan J. Acs & Catherine Armington & Ting Zhang, 2006. "The Determinants of New-firm Survival across Regional Economies," Papers on Entrepreneurship, Growth and Public Policy 2007-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    48. Reynolds, Paul D & Miller, Brenda & Maki, Wilbur R, 1995. "Explaining Regional Variation in Business Births and Deaths: U.S. 1976-88," Small Business Economics, Springer, vol. 7(5), pages 389-407, October.
    49. Udo Brixy & Reinhold Grotz, 2007. "Regional patterns and determinants of birth and survival of new firms in Western Germany," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(4), pages 293-312, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Georgios Fotopoulos & David J Storey, 2017. "Persistence and change in interregional differences in entrepreneurship: England and Wales, 1921–2011," Environment and Planning A, , vol. 49(3), pages 670-702, March.
    2. Colombelli, Alessandra & D'Ambrosio, Anna & Meliciani, Valentina & Francesco Quatraro,, 2016. "Explaining the industrial variety of newborn firms: The role of cultural and technological diversity," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201610, University of Turin.
    3. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: A Bayesian analysis of multi-level spatial correlation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 156-165.
    4. Henry Renski, 2015. "Externalities or Experience? Localization Economies and Start-up Business Survival," Growth and Change, Wiley Blackwell, vol. 46(3), pages 458-480, September.
    5. Davide Piacentino & Giuseppe Espa & Danila Filipponi & Diego Giuliani, 2017. "Firm Demography and Regional Development: Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 48(3), pages 359-389, September.
    6. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation," LSE Research Online Documents on Economics 114290, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    2. Henry Renski, 2015. "Externalities or Experience? Localization Economies and Start-up Business Survival," Growth and Change, Wiley Blackwell, vol. 46(3), pages 458-480, September.
    3. Vasilios Kanellopoulos & Georgios Fotopoulos, 2019. "The effect of knowledge spillovers on regional new firm formation: The Greek manufacturing case," Environment and Planning A, , vol. 51(4), pages 1005-1030, June.
    4. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    5. Manuel Acosta & Daniel Coronado & Esther Flores, 2011. "University spillovers and new business location in high-technology sectors: Spanish evidence," Small Business Economics, Springer, vol. 36(3), pages 365-376, April.
    6. Andrea Bonaccorsi & Massimo Colombo & Massimiliano Guerini & Cristina Rossi-Lamastra, 2014. "The impact of local and external university knowledge on the creation of knowledge-intensive firms: evidence from the Italian case," Small Business Economics, Springer, vol. 43(2), pages 261-287, August.
    7. Kim, Jungho & Kollmann, Trevor & Palangkaraya, Alfons & Webster, Elizabeth, 2022. "Does local technological specialisation, diversity and dynamic competition enhance firm creation?," Research Policy, Elsevier, vol. 51(7).
    8. Dirk Dohse & Sascha Walter, 2012. "Knowledge context and entrepreneurial intentions among students," Small Business Economics, Springer, vol. 39(4), pages 877-895, November.
    9. Lawrence A. Plummer & Zoltán J. Ács, 2015. "Localized competition in the knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 8, pages 145-160, Edward Elgar Publishing.
    10. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    11. David Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2010. "Cultural diversity and entrepreneurship: a regional analysis for Germany," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 55-85, August.
    12. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    13. David Audretsch & Marcel Hülsbeck & Erik Lehmann, 2012. "Regional competitiveness, university spillovers, and entrepreneurial activity," Small Business Economics, Springer, vol. 39(3), pages 587-601, October.
    14. Andrea Bonaccorsi & Massimo G. Colombo & Massimiliano Guerini & Cristina Rossi Lamastra, 2014. "How universities contribute to the creation of knowledge-intensive firms: detailed evidence on the Italian case," Chapters, in: Andrea Bonaccorsi (ed.), Knowledge, Diversity and Performance in European Higher Education, chapter 7, pages iii-iii, Edward Elgar Publishing.
    15. repec:elg:eechap:14395_27 is not listed on IDEAS
    16. Jason P. Brown & Dayton M. Lambert & Raymond J. G. M. Florax, 2013. "The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006," Economic Geography, Clark University, vol. 89(3), pages 203-226, July.
    17. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, vol. 41(1), pages 154-166.
    18. David B. Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2015. "Regional unemployment structure and new firm formation," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 115-138, November.
    19. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    20. Colombelli, Alessandra & D'Ambrosio, Anna & Meliciani, Valentina & Francesco Quatraro,, 2016. "Explaining the industrial variety of newborn firms: The role of cultural and technological diversity," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201606, University of Turin.
    21. Enrico Santarelli & Hien Thu Tran, 2012. "Growth of Incumbent Firms and Entrepreneurship in V ietnam," Growth and Change, Wiley Blackwell, vol. 43(4), pages 638-666, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:48:y:2014:i:8:p:1353-1370. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.