Several theoretical approaches to explaining economic growth focus on externalities arising from interactions between economic agents. A frequently discussed source of such externalities is regional diversity of the industry structure. A large number of empirical studies support the argument...

In this paper we study the impact of diversity on regional growth by extending the existing literature in such that we differentiate between industry diversity and human capital diversity. In order to measure human capital diversity we construct a regional measure based on individual...

The ability to adjust to structural change is vital to economic development, and entries can be active participants in this process. This paper aims to shed some light on the relation between entrepreneurship and growth by arguing that entrepreneurial activity relates to growth via reallocation...

We investigate the effects that regional start-up activity has on employment in new and in incumbent businesses. The analysis is performed for West German regions over the 1987-2002 period. It shows that the effects of new businesses on employment in the incumbents are significantly positive and...