Resource title

Demography and innovative entrepreneurship

Resource image

image for OpenScout resource :: Demography and innovative entrepreneurship

Resource description

Demographic change will be one of the major challenges for economic policy in the developed world in the next decades. In this article, we analyze the relationship between age structure and the number of startups. We argue that an individual s decision to start a business is determined by his or her age and, therefore, that a change in a region s age distribution affects the expected number of startups in the region. Using German regional data, we estimate a count-data model and find that the expected number of startups is positively influenced by the fraction of individuals of working age 20 64 years old. A more detailed analysis of the working-age distribution suggests that startups in knowledge-based (high-tech) manufacturing industries are affected by changes in this distribution whereas firms in other industries are not. In particular, increases in the fraction of individuals in the 20 30 age range and individuals in the 40 50 age range have a positive effect on the number of high-tech startups.

Resource author

Werner Bönte, Oliver Falck, Stephan Heblich

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26160

Resource license

Adapt according to the presented license agreement and reference the original author.