Michael Fritsch, Udo Brixy, Michael Niese, Anne Otto
October 21, 2015
New firm formation in cities. In this article the specifics of new firm formation in cities are analyzed empirically. Start-up rates in urban agglomerations areas are relatively high. Even if one controls for the effect of industry structure density is conducive for the level of new firm formation. However. survival rates of new firms in cities tend to be relatively low. Therefore, cities are characterized by high intensity of market selection leading to high turbulente of the stock of businesses. Does this imply an advantage of cities over other types of region?