We analyze the determinants of de novo entrants in clusters and dispersal. We posit a theoretical framework which articulates the differences in strategic advantages and threats that locating in clusters or dispersal pose to de novo entrants and the firm specific characteristics that are likely...

Using data about all de novo entrants into Canadian manufacturing sectors during 1984-1998, we studied location choices as a function of firms' initial resources and capabilities. Employing nested logit estimation, we examined the impact of various location traits such as: agglomeration,...