We test whether new firms locate close to incumbent firms of the same industry. Tendencies to coagglomerate may explain the general wisdom that industry location is highly persistent over time. We perform separate analysis for East and West Germany which enables us to study two integrated areas...

A multidimensional approach is applied to analyse simultaneously the effects of three groups of determinants on new business formation: industry, space, and changes over time. The data are for West Germany and covers the period from 1983 to 1997. Analysis indicates that the positive impact of...

New firm location decisions, relative to incumbents may be based on a choice between two types of advantages: natural advantages or those that arise from social embeddedness, the latter of which may particularly include knowledge spillovers. We analyze the relative importance of geographically...

We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasi-natural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a...

We analyze the effect of industry, region, and time on new businesssurvival rates by means of a multi-dimensional approach. The data relateto West German districts in the 1983-2000 period. The survival chancesof start-ups tend to be relatively low in industries characterized by ahigh minimum...