Digital gravity? Firm birth and relocation patterns of young digital firms in Germany

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dc.contributor.authorHellwig, Vanessa
dc.date.accessioned2024-01-08T13:10:34Z
dc.date.available2024-01-08T13:10:34Z
dc.date.issued2022-09-23
dc.description.abstractThis paper analyses the spatial patterns of young (<10 years) digital firms in Germany between 2008 and 2017 on county level. Determinants of firm birth locations as well as relocations are considered jointly to understand differences in location choices within firms' life cycles. I match commercial register data of 107,321 firms with county-level administrative data to capture local characteristics. Using an OLS model with fixed effects, I find that the local knowledge base—that is, universities, research institutes, and colocated incumbents—are significant key determinants of digital firm birth when controlling for a host of local characteristics. My results indicate that for five firms per 1000 inhabitants, there is around one firm birth. Second, using a fixed effects gravity model for the analysis of relocations, I find that the most dominant explanatory factor for firm relocation across specifications is distance, that is, relocation costs. Relocation flows are more than twice as high to neighboring counties relative to other locations which shows that digital firms are not as footloose as their business model may suggest. Jointly, my results reflect economic activity's regional persistence, particularly for new firms. My paper provides evidence for policies targeting homogenous digital clusters based on strong colocation and that digital economic activity is not shifted over long distances, but the regional entrepreneurship capital is crucial for local growth.en
dc.identifier.urihttp://hdl.handle.net/2003/42265
dc.identifier.urihttp://dx.doi.org/10.17877/DE290R-24102
dc.language.isoende
dc.relation.ispartofseriesJournal of regional science;63(2)
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/de
dc.subjectDigitalen
dc.subjectFirm relocationen
dc.subjectGravity modelen
dc.subjectICTen
dc.subjectLocation choicesen
dc.subjectMobilityen
dc.subjectStart-upsen
dc.subject.ddc330
dc.titleDigital gravity? Firm birth and relocation patterns of young digital firms in Germanyen
dc.typeTextde
dc.type.publicationtypeResearchArticlede
dcterms.accessRightsopen access
eldorado.secondarypublicationtruede
eldorado.secondarypublication.primarycitationHellwig, V. (2023). Digital gravity? Firm birth and relocation patterns of young digital firms in Germany. Journal of Regional Science, 63, 340–378. https://doi.org/10.1111/jors.12624de
eldorado.secondarypublication.primaryidentifierDOI https://doi.org/10.1111/jors.12624de

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