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New Firm Survival: The Interdependence between Regional Externalities and Innovativeness

Author

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  • Tobias Ebert

    (Philipps-University of Marburg, Economic Geography and Location Analysis, Deutschhausstrasse 10, 35032 Marburg, Germany)

  • Thomas Brenner

    (Philipps-University of Marburg, Economic Geography and Location Analysis, Deutschhausstrasse 10, 35032 Marburg, Germany)

  • Udo Brixy

    (Institute of Employment Research (IAB), Nuremberg, Germany and Department of Geography, Ludwig-Maximilians University, Munich, Germany)

Abstract

This paper provides evidence that the effect of agglomeration externalities on survival is moderated by the start-up’s innovative behavior. It is shown that localization externalities are prevalent particularly in non-high-tech environments and unfold a positive influence on survival for less innovative companies, while their highly innovative counterparts do not benefit or even suffer from spatial concentration. On the contrary, highly innovative high-tech start-ups benefit from a diverse economic structure which enhances their likelihood for survival by fostering the emergence of beneficial inter-industry spill-overs.

Suggested Citation

  • Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:pum:wpaper:2015-05
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    6. Haasnoot, Cornelis W. & de Vaal, Albert, 2022. "Heterogeneous firms and cluster externalities: how asymmetric effects at the firm level affect cluster productivity," Research Policy, Elsevier, vol. 51(6).
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    8. Sana Ullah & Babur Wasim Arif & Muhammad Tariq Majeed, 2019. "The Determinants of Firm Survival among Small Cluster Firms," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 24(1), pages 131-145, Jan-June.
    9. Tessa Conroy & Steven Deller, 2023. "I will survive…but at what (opportunity) cost?: A spatial analysis of business survival and Jacobian externalities," Growth and Change, Wiley Blackwell, vol. 54(2), pages 550-571, June.
    10. Guckenbiehl, Peter & Corral de Zubielqui, Graciela & Lindsay, Noel, 2021. "Knowledge and innovation in start-up ventures: A systematic literature review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
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    More about this item

    Keywords

    Firm survival; Innovation; Externalities;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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