Creative destruction and regional productivity growth: evidence from the Dutch manufacturing and services industries

Abstract

Firm entry, Firm exit, Regional competitiveness, Total factor productivity, Turbulence, L10, L26, M13, O18, R11,

Related variety and economic development: a literature review

“…Without making further distinctions, both related and unrelated variety in general have a positive effect on regional employment growth. Distinguishing between manufacturing and services, and contrary to Bosma et al (2011), related variety positively affects regional employment in services, while unrelated variety positively affects regional employment growth in manufacturing. Hartog, Boschma, and Sotarauta (2012) investigated the impact of related variety in Finland; they did not find evidence that related variety in itself influences employment growth.…”

“…Bosma, Stam, and Schutjens (2011) distinguished between total factor productivity growth in manufacturing and in services for 40 Dutch regions. They found that related variety had a positive effect on productivity growth in manufacturing, but a slightly negative effect on productivity growth in services.…”

“…Those who looked at inter-industry differences found that the effects of related variety on growth may be specific to certain industries only, especially manufacturing and knowledge-intensive ones (Bishop & Gripaios, 2010;Bosma et al, 2011;Cortinovis & Van Oort, 2015;Hartog et al, 2012). Concerning the studies looking on how countries or regions develop new industries following Hidalgo et al (2007), it was also found that if a region or countries already host industries that are related to a specific industry, it is much more likely to become specialized in that industry.…”

The more business owners, the merrier? The role of tertiary education

“…By estimating macroeconomic production functions, we follow the tradition of a second strand of literature which models output as a function of the traditional input factors physical capital, labor, and knowledge capital, and, in addition, of an input factor labeled entrepreneurship capital (see, for instance, Audretsch and Keilbach 2004a, b;Audretsch et al 2006;Mueller 2007;Bosma et al 2011;Fritsch and Schroeter 2011). We contribute to this strand of literature in two ways.…”

Methods of analyzing the relationship between new business formation and regional development

“…Because start-ups are usually located close to the founder's residence (Stam, 2007;Dahl and Sorenson, 2009) Sometimes, net entry, calculated as the change in the number of businessowners, is used, mainly for reasons of data availability (e.g., Carree and Thurik, 2008;Dejardin, 2011). Another variant is to analyze the effect of turbulence, defined as the number of entries plus the number of exits, on economic development (e.g., Bosma, Stam, and Schutjens, 2011), which can be regarded as an indicator of the level of creative destruction in the region. Most studies based on data from the Global Entrepreneurship Monitor (GEM) (e.g., Bosma, 2011) use "total entrepreneurial activity" (TEA), which is the percentage of population between 18-64 years old that is either actively involved in starting a new venture or is the owner/manager of a young business (for details, see Reynolds et al, 2005).…”