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Human capital, diversity, and new firm formation

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  • Paul Bishop
  • Steven Brand

Abstract

This paper analyses the role of human capital in determining regional variations in firm births. It is argued that both the level and heterogeneity of human capital are particularly important for services. This is confirmed by an empirical analysis of data for sub-regions of Great Britain from 2001 to 2007 utilising ordinary least-squares and maximum likelihood models incorporating spatial effects. Other variables found to impact on the creation of new service firms are related to labour market effects, agglomeration economies and competition; there are also significant differences in the impact of human capital between services and manufacturing.

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  • Paul Bishop & Steven Brand, 2014. "Human capital, diversity, and new firm formation," The Service Industries Journal, Taylor & Francis Journals, vol. 34(7), pages 567-583, May.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:7:p:567-583
    DOI: 10.1080/02642069.2014.886193
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    References listed on IDEAS

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    1. Rene Söllner, 2010. "Human Capital Diversity and Product Innovation: A Micro-Level Analysis," Jena Economics Research Papers 2010-027, Friedrich-Schiller-University Jena.
    2. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
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    Cited by:

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    2. Arvid Muzanenhamo & Edward Malatse Rankhumise, 2022. "Literature review on digital entrepreneurship in South Africa: a human capital perspective," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 464-472, December.
    3. AFAWUBO, Komivi & NOGLO, Yawo Agbényégan, 2022. "ICT and entrepreneurship: A comparative analysis of developing, emerging and developed countries," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Gregory N. Price & Chris W. Surprenant, 2022. "The Treatment Effect of Business Education on the Supply of High School Entrepreneurs in Atlanta and New Orleans," The American Economist, Sage Publications, vol. 67(1), pages 85-98, March.
    5. 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.

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