Literature suggests that location should matter for R&D activities. However, attempts to empirically detect differences in innovation activity between regions have so far been rather unsuccessful. Using a unique data set which contains comparable information about manufacturing enterprises in...

We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather pathdependent so that changes are relatively small. The main...