We assess the empirical literature on the determinants of spatial variations in new-firm formation rates by undertaking a systematic empirical analysis of the relative roles of different demand- and supply-side factors. Using instrumental variables to address endogeneity, we find that local...

While the location and concentration of industrial activities has been a significant topic for both urban planners and urban and regional economist, the cluster approach has contributed to theory and empirical works by emphasizing the significancy of networks with respect to the competitiveness....