A Control Group Study of Incubators’ Impact to Promote Firm Survival
Michael Schwartz
Journal of Technology Transfer,
No. 3,
2013
Abstract
It is widely unclear as to whether start-up firms supported by publicly-initiated incubator initiatives have higher survival rates than comparable start-up firms that have not received support by such initiatives. This paper contributes to the underlying discussion by performing a large-scale matched-pairs analysis of the long-term survival of 371 incubator firms (after their graduation) from five German incubators and a control group of 371 comparable non-incubated firms. The analysis covers a 10-year time span. To account for the problem of selection bias, a non-parametric matching approach is applied to identify an appropriate control group. For neither of the five incubator locations, we find statistically significant higher survival probabilities for firms located in incubators compared to firms located outside those incubator organizations. For three incubator locations the analysis reveals statistically significant lower chances of survival for those start-ups receiving support by an incubator. The empirical results, therefore, raise some doubts regarding the impacts of incubation on long-term firm survival.
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A Control Group Study of Incubators’ Impact to Promote Firm Survival
Michael Schwartz
Wirtschaft im Wandel,
No. 7,
2010
Abstract
For more than half a century, publicly funded business incubators (BIs) are at the heart of urban and regional technology and innovation policies. However, it is widely unclear as to whether start-up firms supported by publicly-initiated incubator initiatives have higher survival rates than comparable start-up firms that have not received support by such initiatives. The present article contributes to the underlying discussion by performing an empirical analysis of the long-term survival of 371 incubator firms (after their graduation) from five German BIs and contrasting these results with the long-term survival of a control group of 371 comparable non-incubated firms. The analysis covers a 10-year time span. For neither of the five incubator locations, we find statistically significant higher survival probabilities for firms located in incubators compared to firms located outside those incubator organizations. For three incubator locations the analysis even reveals statistically significant lower chances of survival for those start-ups receiving support by an incubator. We therefore arrive at the conclusion that being located in an incubator does not increase the chances of long-term business survival.
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Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer‐Employee Data from Germany
Boris Hirsch, Thorsten Schank, Claus Schnabel
Journal of Labor Economics,
No. 2,
2010
Abstract
This article investigates women’s and men’s labor supply to the firm within a semistructural approach based on a dynamic model of new monopsony. Using methods of survival analysis and a large linked employer‐employee data set for Germany, we find that labor supply elasticities are small (1.9–3.7) and that women’s labor supply to the firm is less elastic than men’s (which is the reverse of gender differences in labor supply usually found at the level of the market). Our results imply that at least one‐third of the gender pay gap might be wage discrimination by profit‐maximizing monopsonistic employers.
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The Spatial Clustering of the Photo-voltaic Industry in Berlin-Brandenburg
Steffen Ebert, Matthias Brachert, Iciar Dominguez Lacasa
Wirtschaft im Wandel,
No. 11,
2009
Abstract
Recent empirical studies show a process of selective clustering in the photo-voltaic industry in East Germany. Especially locations like Bitterfeld-Wolfen, Freiberg/Dresden, Erfurt/Arnstadt and Berlin-Brandenburg were able to attract concentrations of economic activity in this industry. Regarding competition between the different locations for production and employment, emerging agglomeration economies can be seen as one major source increasing inter-regional competitiveness.
The aim of this article is to provide insights into the process of spatial clustering of photo-voltaic industry in Berlin-Brandenburg. With the help of a multi-dimensional cluster-concept developed by Bathelt, we analyse the region’s strengths and weaknesses regarding its generation of agglomeration economies.
The analysis shows that there are indeed first signs of agglomeration economies developing in the region. Despite a low level of horizontal cooperation, companies do profit from co-localisation by continuous observation of the local competitors. Along the value adding production chain, vertical co-operation is increasing, leading to positive effects by specialised suppliers and gains in transportation cost.
But the focal point in further industry development is the augmentation of the regional stock of knowledge. Regarding the increasing pressure on the companies’ innovativeness as a result of changes in market conditions in the photo-voltaic sector, only innovative and efficiently producing companies will be able to survive the industries’ consolidation period. Therefore, it is necessary to further support the increasing interconnectedness between university research, non-university research and local companies in order to profit from the high technological potential of the companies in the region.
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Beyond Incubation: An Analysis of Firm Survival and Exit Dynamics in the Post-graduation Period
Michael Schwartz
Journal of Technology Transfer,
2009
Abstract
With regard to the survival rates of business incubator (BI) firms, the literature mainly presents findings of failure rates only during the incubation period. Little is known about the survival or exit dynamics of firms after leaving the incubator facilities. The study approaches this research question by examining the survival of 352 firms from five German BIs after their graduation. The findings suggest that graduation causes an immediate negative effect on survivability that lasts up to three years after leaving the incubators. Furthermore, heterogeneous patterns of post-graduation exit dynamics between the BIs were observed. It was also found that performance during the incubation period is an indicator of the propensity of business closure after graduation. This study offers valuable insights and implications for all stakeholders of BI-initiatives.
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