The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation
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- The Influences of Economic and Technology Policy on the Dynamics of New Firm Formation
- Choi, Young Rok; Phan, Phillip H.
- entrepreneurial policy; government; new firm formation
- Issue Date
- SMALL BUSINESS ECONOMICS, v.26, no.5, pp.493 - 503
- This study attempts to reveal how macroeconomic and technology policies that encompass the opportunity and individual drivers of entrepreneurship explain the dynamics of new firm formation in a country. To do so we rely on the Schumpeterian, industrial organization, and labor economics traditions of entrepreneurship, and performed an exploratory test with longitudinal U.S. data from 1968 to 1993. The results of this study suggest that R&D investments, patents, economic concentration, pro-competition policy, and labor mobility are important areas in which government policy can influence the intensity of new firm formation.
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