Regional Knowledge Production and Entrepreneurial Firm Creation: Spatial Dynamic Analyses

Lee, In Hyeock; Hong, Eunsuk; Sun, Laixiang

Abstract

This study assesses whether and to what extent new knowledge available in a region and its surrounding regions induces and facilitates new firm creation, an important topic that is largely left untested in the literature. Using a full population firm-level dataset of 44,434 newly created entrepreneurial firms in the manufacturing sector in 234 regions of South Korea between 2000 and 2004, its econometric estimations indicate a positive externality effect of new knowledge production on activities of new firm creation within and across the regional boundaries, with the intra-regional effect being stronger than the inter-regional one. The estimations also show that both the intra- and inter-regional effects are stronger in high-tech industries than in low-tech industries.

Citation

Lee, I. H., Hong, E., & Sun, L. (2013). Regional Knowledge Production and Entrepreneurial Firm Creation: Spatial Dynamic Analyses. Journal of Business Research, 66(10), 2106-2115. https://doi.org/10.1016/j.jbusres.2013.02.037

• Journal Article Type: Article
• Publication Date: Oct 1, 2013
• Deposit Date: Jan 2, 2013
• Journal: Journal of Business Research
• Print ISSN: 0148-2963
• Electronic ISSN: 1873-7978
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 66
• Issue: 10
• Pages: 2106-2115
• DOI: https://doi.org/10.1016/j.jbusres.2013.02.037
• Keywords: Regional innovation capacity; Entrepreneurship; Firm creation; Knowledge spillovers; System GMM
• Publisher URL: http://dx.doi.org/10.1016/j.jbusres.2013.02.037
• Related Public URLs: http://www.sciencedirect.com/science/article/pii/S0148296313000611