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...

The study posits that the causal links between entry and failure rates also flow from failure to entry. As older firms fail, resources are recycled by new entrants permitting local renewal. Failure levels affect both the intensity of the entrepreneurial search for opportunities and the...