Regional determinants of new business formation in China: Prefecture-level evidence

Marcin Borowiecki (Speaker), Karl-Heinz Leitner

Research output: Chapter in Book or Conference ProceedingsConference Proceedings with Oral Presentationpeer-review


Using a panel data model, we study the effects of regional and industry-level traits on new business formation (NBF) for 164 industries across 266 Chinese prefectures between 1998 and 2007. The objective is to provide empirical estimates on effects of prefecture traits on entry rates, and in particular on effects of prefecture knowledge capital stocks on R&D-intensive new business formation. In line with literature on knowledge spillovers, we find extensive evidence of a positive prefecture knowledge capital stock effect on R&D-intensive NBF rates, whereas knowledge capital stocks do not predict non R&D-intensive entry rates. Among regional and industry-level characteristics, we find that prefecture supplier and customer market strength are strongly linked to higher business entry rates. Our results for China contrast with recent findings on the effects of regional traits on firm entry rates in India and the US, indicating distinct regional patterns of Chinese entrepreneurship.
Original languageEnglish
Title of host publicationProceedings of the 55th ERSA Congress
Number of pages36
Publication statusPublished - 2015
EventERSA 55th Congress - World Renaissance -
Duration: 25 Aug 201528 Aug 2015


ConferenceERSA 55th Congress - World Renaissance

Research Field

  • Former Research Field - Innovation Systems and Policy


  • New business formation; Knowledge spillovers; Agglomeration economies; China


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