Lack of demand and the tightening of credit conditions are also bound to hit firm formation.
Beyond de novo spinoffs, abundant social capital in highly agglomerated regions facilitates co-operation and new firm formation, and even co-operation amongst competitors to create new firms.
Moreover, the new KIBS firms tend to co-locate with existing KIBS firms, which confirms that the cumulative causation mechanism matters in new KIBS firm formation process in the PRD.
The paper proposes a taxonomy of regional modes of knowledge production and investigates new firm formation in 92 Italian NUTS 3 regions observed over the 1995 2009 time span.
The paper investigates the impact of the configuration of local knowledge bases on new firm formation dynamics by combining the KSTE framework with the recombinant knowledge approach.
The suggested typology of university spin-off/start-up firms is based on several variables, including the type of university sponsorship, university involvement in firm formation, the character of knowledge applied, and co-localization of the founders.
Other factors linked to more favorable conditions for firm formation include higher educational attainment in a region, lower tax rate, and habitat factors affecting quality of life, such as lower housing prices and higher rates of health insurance coverage.
The results show that intellectual eminence, and the policies of making equity investments in TLO start-ups and maintaining a low inventor's share of royalties increase new firm formation.
We compare four different explanations for cross-institutional variation in new firm formation rates from university technology licensing offices (TLOs) over the 1994 1998 period the availability of venture capital in the university area; the commercial orientation of university research and development; intellectual eminence; and university policies.
Using panel data on metropolitan areas in the United States, from 1993 to 2002, our analyses reveal that the positive relationships between government research grants to universities and research institutes and the rates of patenting and firm formation in a region become more pronounced as the supply of venture capital in that region increases.
