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Entrepreneurial Knowledge, Technology and the Transformation of Regions by Roger Stough, Börje Johansson, Charlie Karlsson

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3 Startups and their effects on local development

The case of Sweden1

Hans Westlund, Amy Rader Olsson and Johan P. Larsson

 

Abstract

The current empirical entrepreneurship literature mainly shows a positive correlation between entrepreneurship (measured as the number of startups) and economic growth. However, the mechanisms by which entrepreneurship exerts its positive influence are not obvious. This chapter studies the connections between startups and local development at the municipal level in Sweden 2000–08.We use a unique database including not only total startups, but also data on startups divided into six branches to study the impact of entrepreneurship on population and employment growth. Analyses are performed on all municipalities as ...

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