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After Joseph Schumpeter, economists have given much credence to the role that new business formation plays in regional economic development. In this video, MICHAEL FRITSCH argues that not all Start-Ups are created equal and proposes a more balanced assessment of the factors underlying economic development. Fritsch’s research takes a region-based approach and finds that up to two-thirds of the positive economic effects of new business formation are locatable in incumbent businesses that react effectively to the emergence of innovative challengers. The research poses important questions for economists and governments alike who need to consider not only how to encourage entrepreneurial innovation but also how to support existing businesses to effectively respond to new competitors.


Michael Fritsch is Professor of Business Dynamics, Innovation and Economic Change at Friedrich Schiller University Jena. Having previously held posts at Indiana University, Carnegie Mellon University, and Technical University Berlin, Fritsch is associate editor of the journals Regional Studies and Small Business Economics and he sits on the editorial boards of the European Journal of Innovation Management and the Journal of Global Entrepreneurship Research. His main research interests include new business formation processes and their impact on economic development and economic development strategies.


Friedrich Schiller University Jena (Friedrich-Schiller-Universität Jena)

The Friedrich Schiller University Jena is the only traditional university in the German state of Thuringia with 10 faculties covering all disciplines. It was founded in 1558 and today offers a broad range of almost 200 different study programmes ranging from archaeology to Studies in Economics. The student body comprises about 18,000 students who, in various rankings and studies, have time and again born testimony to the good academic and study conditions at their university. The Friedrich Schiller University is characterized by high and strong research dynamics. It has been a long tradition at the university to work interdisciplinarily, and close cooperation with non-university research institutions and the industry have always had great importance. Research at the Friedrich Schiller University focuses around the three keywords “Light – Life – Liberty”. Special attention and support is given to young scientists and academics at the University of Jena. With it's nationwide recognized Graduate Academy, the Friedrich Schiller University puts great emphasis on optimal qualifications and the highest possible quality standards. The more than 120 cooperation agreements with universities around the world underline the international orientation of the Friedrich Schiller University who has also been able to build up a reputation of preserving culture thanks to its 42 collections and museums. (Source: University of Jena)
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Original publication

Entrepreneurship and Growth

Fritsch Michael
The Routledge Companion to the Makers of Modern Entrepreneurship
Published in 2017

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