No Place like Home? Location choice and firm survival after forced relocation in the German machine tool industry

We study location choices and firm performance in the German machine tool industry, focusing on the forced migration of East German firms after World War II. Our analysis of location choices supports earlier findings that industry agglomerations attract further entrants. Relocating firms outperformed entrants that possessed no prior industry experience; apparently were able to build on their prewar capabilities. We find no evidence suggesting that firm performance benefited from agglomeration effects.Capabilities; agglomeration economies; location choice; firm survival; machine tool industry

We need to talk - or do we? Geographic distance and the commercialization of technologies from public research

Using a new dataset with detailed geographic information about licensing activities of the Max Planck Society, Germany's largest non-university public research organization, we analyze how the probability and magnitude of commercial success are affected by geographic distance between licensors and licensees. Our evidence suggests that proximity is not generally associated with superior commercialization outcomes. A negative association between distance and commercialization success is identified only for the specific cases of, first, spin-off licensees located outside Germany and, second, foreign licensees within the subsample of inventions with multiple licensees.academic inventions, licensing, spin-off entrepreneurship, geographic distance

Steve Jobs or No Jobs? Entrepreneurial activity and performance among Danish college dropouts and graduates

Are college dropouts successful entrepreneurs? Other than anecdotal evidence on illustrious college dropouts who managed to become self-made billionaires, there is only limited empirical evidence to answer this question. This paper addresses this issue by investigating the relationship between college dropout or graduation and entrepreneurship activity as well as performance. Using information from the Danish labor market register, we identify college students, whether these students graduate, and if they registered a new venture. We find that a larger share of dropouts starts a business, but this reflects the endogeneity of the decision to exit from college. On average, becoming an entrepreneur does not allow dropouts to escape from their punishment in the labor market

Structural Learning: Embedding discoveries and the dynamics of production

Production and learning of productive knowledge are profoundly intertwined processes as the activation of either process triggers the other, very often implying interdependent transformations. The paper aims to open the ‘production black box’ by proposing the analytical map of production as a tool for disentangling the set of interdependent relationships among capabilities, tasks and materials. The concept of structural learning is introduced to identify the continuous process of structural adjustment triggered and oriented by existing productive structures at each point in time. Structural learning trajectories allow for the transformation of structural constraints such as bottlenecks and technical imbalances into structural opportunities. Complementarities, similarities and indivisibilities are essential focusing devices for activating compulsive sequences of technological change as well as discovering structurally embedded opportunities. The paper then investigates the tension between structure and agency present in structural learning trajectories, and examines the form it takes in different productive organisations

The entrepreneurship Beveridge curve

The rate of creation and failure of start-up firms can be modeled as a search and matching process as in labor market matching models. Setting out an endogenous growth model with entrepreneurship, we derive an entrepreneurship Beveridge curve. We use this to illustrate that whether or not a start-up is successful depends on the efficiency with which entrepreneurial abilities are matched with business opportunities. The entrepreneurship Beveridge curve is a potentially useful analytical contribution to the formalization of the economics of entrepreneurship. We identify a number of extensions and applications

Business experience and start-up size: buying more lottery tickets next time around?

This paper explores the determinants of start-up size by focusing on a cohort of 6247 businesses that started trading in 2004, using a unique dataset on customer records at Barclays Bank. Quantile regressions show that prior business experience is significantly related with start-up size, as are a number of other variables such as age, education and bank account activity. Quantile treatment effects (QTE) estimates show similar results, with the effect of business experience on (log) start-up size being roughly constant across the quantiles. Prior personal business experience leads to an increase in expected start-up size of about 50%. Instrumental variable QTE estimates are even higher, although there are concerns about the validity of the instrument

Industry in Motion: Using Smart Phones to Explore the Spatial Network of the Garment Industry in New York City

Industrial agglomerations have long been thought to offer economic and social benefits to firms and people that are only captured by location within their specified geographies. Using the case study of New York City’s garment industry along with data acquired from cell phones and social media, this study set out to understand the discrete activities underpinning the economic dynamics of an industrial agglomeration. Over a two week period, data was collected by employing the geo-locative capabilities of Foursquare, a social media application, to record every movement of fashion workers employed at fashion design firms located both inside and outside the geographical boundaries of New York City’s Garment District. This unique method of studying worker activity exposed the day-to-day dynamics of an industrial district with a precision thus far undocumented in literature. Our work suggests that having access to the cluster provides almost the same agglomeration economies as residing within its borders.Rockefeller Foundatio

The location choice of graduate entrepreneurs in the United Kingdom

The graduates’ startup formation process represents a possible future role for universities in the form of active-participation , when speaking of the regional development. Tracking the path of entrepreneurial graduates who are moving between home, university, and employment, allows us to identify the specific motives that determine their migration decisions. The choice of location of graduate entrepreneurs is naturally affected by the context of their home region, as the availability of resources leads to a rising entrepreneurial intention. Similarly, the location of the startups flourish in densely populated urban regions, as well as in wealthier locations. At the same time, the vibrancy of the local entrepreneurial ecosystems is enhanced through mutual exchange and collaboration; and the higher the number of startups already present in a region, the higher the probability becomes for interaction and creativity. A leading tendency, not least to be mentioned, is that the preference to start new businesses is connected to highly-skilled creative sectors of the economy