An ecological perspective on entrepreneurship in industrial districts

The model of industrial districts postulates that business foundings are driven by co--operative and competitive processes. These dynamic processes reflect inter--firm learning, operational flexibility, and constant innovation, and are seen as the source of a district's economic vitality. However, empirical studies have usually followed static research designs and investigators have tended to make dynamic inferences from cross--sectional data. In this study, the author draws on organizational ecological theory to test hypotheses concerning temporal variations in the relationship between co--operation, competition, and business founding rates in a textile--clothing district in Germany.