The Influence of Industry Mix on Regional New Firm Formation in the United States

Abstract

Renski H. The influence of industry mix on regional new firm formation in the United States, Regional Studies. Per capita rates of entry are commonly used to measure the regional entrepreneurial climate. Yet entry rates vary widely by industry and tend to mirror existing regional specializations. Without controlling for industry mix, factors associated with regional differences in entry may describe the industry base rather than explain variations in entrepreneurial climate. This study finds that although most of the factors commonly associated with the regional entrepreneurial climate remain significant after purging the data of industry-mix effects, others – namely educational attainment, homeownership, university research and development, and unemployment – are contingent upon industry structure.

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