Entrepreneurship and the Spatial Context: Evidence on the Location of Firm Births in Greece

Abstract

This paper analyses the effect of the spatial context upon entrepreneurship in Greek regions. Cross‐sectional data referring to 4151 births at NUTS III level (prefecture) are used for firm births in four industries, namely manufacturing, commerce, services, and tourism. The formulated hypotheses are in regard to the effect of agglomeration economies, defined here as urbanization and localization economies, and other factors that typically affect the location of start‐ups. Results indicate that strong localization economies exist (both of the Marshallian and the Jacobian type) while, in addition, the spatial context of entrepreneurship affects different industries in different ways.