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The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

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Abstract

We analyze the effect of industry, region, and time on new business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983–2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum efficient size and high numbers of entries. We find that regional characteristics play a rather important role and that introducing the regional dimension leads to considerable improvements of the estimation results. The significance of the regional dimension is also reflected in a remarkably high level of neighborhood effects.

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Authors and Affiliations

  1. Faculty of Economics and Business Administration, Technical University Bergakademie Freiberg, Lessingstraβe. 45, 09596, Freiberg, Germany

    Michael Fritsch

  2. Institute for Employment Research at the Federal Employment Services, Regensburger Straße 104, 90327, Nuremberg, Germany

    Udo Brixy

  3. Faculty of Economics and Business Administration, University of Passau, Innstraße 27, 94032, Passau, Germany

    Oliver Falck

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  1. Michael Fritsch
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  2. Udo Brixy
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  3. Oliver Falck
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Correspondence to Michael Fritsch.

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Fritsch, M., Brixy, U. & Falck, O. The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis. Rev Ind Organ 28, 285–306 (2006). https://doi.org/10.1007/s11151-006-0018-4

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  • DOI: https://doi.org/10.1007/s11151-006-0018-4

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