Audretsch and Fritsch (2002) proposed two explanations for the mixed evidenceregarding the relationship between new firm formation and regional development. Firstly,they found evidence for the existence of long time lags needed before the main effects of newfirm formation on employment change...

Literature suggests that location should matter for R&D activities. However, attempts to empirically detect differences in innovation activity between regions have so far been rather unsuccessful. Using a unique data set which contains comparable information about manufacturing enterprises in...