Detecting spatial heterogeneity in predictors of firm start-up activity of Austria with geographically weighted regression
by Robert J. Breitenecker, Erich J. Schwarz
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 12, No. 3, 2011

Abstract: Many studies in entrepreneurship research seek to find regional factors which can explain regional variations in firm start-up activity. Reviewing the entrepreneurship literature points out that in most studies classical global linear models are used to identify influencing factors on regional start-up activity. But estimating a global model implicates stable relationships between response and predictor variables over the whole study area. In addition to that, the spatial component of regional data is not considered in most studies although there exists a spatial dependence in regional data which can be measured by indicators for spatial autocorrelation. We estimate a geographically weighted regression model to show the variability of relationships between two different regional start-up rates and their regional determinants of Austria. The results indicate that spatial heterogeneity in predictors is present and that the global linear model is not appropriate to estimate start-up activity of Austria.

Online publication date: Sat, 11-Oct-2014

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