When the difference makes a difference–the regional embeddedness of entrepreneurship

Robert J. Breitenecker*, Rainer Harms, Antje Weyh, Daniela Maresch, Sascha Kraus

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Regional determinants of new firm formation are of interest to researchers and policymakers. In the analysis of new firm formation, most studies use econometric approaches that mask intra-unit variations, not recognizing counterbalancing and dilution effects as a result. Recent advances in spatial statistics such as Geographically Weighted Regression (GWR) take local variations into account. However, these approaches operate only on a bivariate level, making it impossible to detect the homogenous parts of the area under examination with regard to a number of relationships between new firm formation and its determinants. Based on a sample of 412 German regions, we apply GWR and subsequent graph-partitioning clustering to identify multi-relationally homogeneous sub-areas. Being that the results suggest a four-cluster solution, ‘one size fits all’ policies and premature unit zoning can be called into question.

Original languageEnglish
JournalEntrepreneurship and Regional Development
Volume29
Issue number1-2
Pages (from-to)71-93
ISSN0898-5626
DOIs
Publication statusPublished - 1. Jan 2017
Externally publishedYes

Fingerprint

New firm formation
Embeddedness
Entrepreneurship
Geographically weighted regression
Partitioning
Politicians
Econometrics
Clustering
Zoning
Dilution
Graph
Spatial statistics

Keywords

  • Geographically weighted regression
  • regional cluster
  • regional start-up activity
  • spatial autocorrelation
  • spatial clustering
  • spatial heterogeneity

Cite this

Breitenecker, Robert J. ; Harms, Rainer ; Weyh, Antje ; Maresch, Daniela ; Kraus, Sascha. / When the difference makes a difference–the regional embeddedness of entrepreneurship. In: Entrepreneurship and Regional Development. 2017 ; Vol. 29, No. 1-2. pp. 71-93.
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When the difference makes a difference–the regional embeddedness of entrepreneurship. / Breitenecker, Robert J.; Harms, Rainer; Weyh, Antje; Maresch, Daniela; Kraus, Sascha.

In: Entrepreneurship and Regional Development, Vol. 29, No. 1-2, 01.01.2017, p. 71-93.

Research output: Contribution to journalJournal articleResearchpeer-review

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