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Tartu, | 2 › Sierdjan Koster › Founding types and employment growth

Tartu, | 3 Agenda ›Faculty of Spatial Sciences Research on new firm formation ›Study New firm formation  regional employment ›Future research

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Tartu, | 5 Faculty of Spatial Sciences ›University of Groningen ›950 students ›75 staff members ›4 Departments: Urban and regional planning Cultural Geography Demography Economic Geography ›Urban and Regional Studies Centre (URSI)

Tartu, | 6 Economic geography ›Explaining regional economic change ›Micro-level behaviour and macro-level outcomes ›Three core themes: Labour market dynamics Firm demography Real estate developments ›Special interest in peripheral region (the North)

Tartu, | 7 Unemployment 2006

Tartu, | 8 Firm demography ›Life-cycle events and economic growth ›Events: Birth / new firm formation Relocation

Tartu, | 9 Locational preferences in the Netherlands

Tartu, | 10 Locational preferences in the Netherlands

Tartu, | 11 New firm formation; research context ›New firm formation  economic growth ›Structural aspects in this relationship Time dimension Space dimenion Types of firms Habitual entrepreneurs Opportunity vs. Necessity Spin-offs vs. Non spin-offs

Tartu, | 12 Studies ›Firm level Thesis: spin-offs vs non spin-offs ›Regional level Persistence in start-up rates Founding types and regional employment

Tartu, | 13 Start-up success firm types

Tartu, | 14 Agenda ›Faculty of Spatial Sciences Research on new firm formation ›Study New firm formation  regional employment ›Future research

Tartu, | 15 Structural aspects ›New firm formation  economic development ›Type of firm Building on thesis and Stam (2003) ›Temporal Using frame-work Fritsch and Mueller (2004)

Tartu, | 16 Entrepreneurship and economic growth ›Schumpeter’s Framework Competition / creative destruction Threat of entry New combinations / enhanced variety Breaktrough innovations / new markets

Tartu, | 17 However… ›Not all new firms are equally ‘entrepreneurial’ Distinct motives for start-up Distinct innovation strategies Distinct survivability …

Tartu, | 18 Definitions ›Organizational foundings: New establishments started by existing organizations ›Individual Foundings New establishments with no ties to existing organizations

Tartu, | 19 Measurement ›Individual start-ups Labour market aproach Number of individual start-ups / potential labour market population ›Organizational start-ups Ecological apporach Number of organizational start-ups / stock of firms

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Tartu, | 21 Organizational foundings ›Motives: Strategic considerations: scale economies Practical reasons (space) ›Organizational foundings  employment Jovanovic: efficient size Competition

Tartu, | 22 Fritsch and Mueller, 2004

Tartu, | 23 Organizational foundings  employment ›Efficient size (Jovanovic) ›Competition (survivability is higher) ›Direct effect of employment generation (statistical) ›Innovation? / new capacities?

Tartu, | 24 Empirical analysis ›Data from Chambers of Commerce / EIM › ›40 Corop regions (NUTS 3) ›Lag structure: Polynomial lags (Almon distribution) ›Eviews ›Fixed effects models vs. No fixed effects ›Spatial dependence

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Tartu, | 27 Types of founding and employment

Tartu, | 28 Interpretation ›Direct effects Organizational start-ups: positive Individual start-ups: negative ›Lagged effects: Organziational start-ups: competition Individual start-ups: new capacities

Tartu, | 29 Conclusion ›Structural elements Time Space (also in country) Type of founding / firm ›Organizational founding Distinct background, distinct outcomes ›Need for micro-level studies and macro level outcomes

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