This paper compares the structure and the development of new firm formation activity in three German regions. The two East German regions, Dresden and Rostock, show significantly higher start-up rates than the West German region Karlsruhe. The analysis of entry cohorts reveals that not only the...

Audretsch and Fritsch (2002) proposed two explanations for the mixed evidence regarding the relationship between new firm formation and regional development. Firstly, they found evidence for the existence of long time lags needed before the main effects of new firm formation on employment change...

We investigate the effects of new business formation on employment change in German regions. A special focus is on the lag-structure of this effect and on differences between regions. The different phases of the effects of new business formation on regional development are relatively pronounced...