Innovation and Entrepreneurship in the Global Economy
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Innovation and Entrepreneurship in the Global Economy

Knowledge, Technology and Internationalization

  • New Horizons in Regional Science series

Edited by Charlie Karlsson, Urban Gråsjö and Sofia Wixe

Innovation and entrepreneurship are the prime drivers in the global economy. This scholarly book identifies some of the key forces behind innovation and entrepreneurship at the same time as it closes the gap between science and technology R & D, innovation, entrepreneurship, productivity growth, and internationalization. The expert contributions explore the underlying forces and add substantial theoretical and empirical knowledge to the current state-of-the-art in several research fields including the economics of innovation and entrepreneurship, regional economics, economic geography and international economics.
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Chapter 7: Start-up rates, entrepreneurship culture and the business cycle: Swedish patterns from national and regional data

Martin Andersson

Abstract

It is often claimed that there are locally embedded values and attitudes towards entrepreneurship, exerting a strong influence on the rate and level of entrepreneurial activity in regions. The concept of regional entrepreneurship culture aims to capture such phenomena, and refers in a general sense to the level of social acceptance and encouragement of entrepreneurs and their activities in a region. This chapter discusses regional entrepreneurship culture as a source of persistent differences in regional rates of new firm formation, and presents a number of empirical regularities for Sweden to illustrate the empirical relevance of the main arguments. Using data on rates of new firm formation across Swedish regions over time, the chapter further explores the association between start-up activity and the business cycle, as well as how the geographic distribution of start-up rates changes during a major economic crisis.

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