Business dynamics in an industry is generally seen as an important indicator of the industry's level of competitiveness and economic performance. Two types of business dynamics may be distinguished: business dynamics reflecting competition by new-firm entries and business dynamics reflecting competition among incumbent firms. The current paper pays attention to the latter type of business dynamics. A sophisticated indicator for measuring the extent of business dynamics among incumbent firms in an industry is the mobility index. In the current paper we compute mobility indices for 16 industries – covering the whole private sector except for the primary sectors of economy – in The Netherlands over the period 2000–2006, and compare the values of the mobility indices across the sectors.

This paper investigates the relationship between entrepreneurial culture and the rate of nascent entrepreneurship. Embedded in trait research, we develop a new composite measure of entrepreneurial culture using data from the World Values Survey. To corroborate the results obtained when regressing this newly developed measure on 2002 levels of nascent entrepreneurship in a sample of 28 countries, we also employ existing indicators of entrepreneurial culture, i.e. McClelland’s N achievement index (1961), Granato, Inglehart and Leblang’s Achievement motivation index (1996), Lynn’s Competitiveness index (1991), and GLOBE’s (2004) performance orientation measure. In contrast with the existing measures we find a significant positive effect of our new measure of entrepreneurial culture, leading us to i) discuss the strengths and weaknesses of these existing measures, and ii) interpret the wider implications of our findings for the research into the role of entrepreneurial culture in explaining international differences in entrepreneurship rates.

This paper examines the prevalence and the determinants of informal entrepreneurial investment activity (including investors in firms of family and friends, and business angels), using a dataset of more than 175,000 individuals including some 4000 informal investors - in 28 highly developed countries over the period 2002-04. We distinguish between micro-level and macro-level determinants. The results uncover a positive virtuous circle where the demand for informal investment tends to generate its own supply as a result of micro and macro factors. Our results also suggest that higher levels of entrepreneurial activity at the country level increase the probability that venture capital and informal investment work in tandem with one another as complements rather than substitutes. Overall, we find that entrepreneurial activity whether ongoing or having resulted in exit appears to boost the supply of informal investors. This effect applies to both friends and family (F&F) and business angel investor types.

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions are reflected in GDP growth for a sample of 36 countries. The rate of ambitious entrepreneurship is defined as the percentage of adult population that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old, and, in addition, expects to employ 20 employees or more within five years after the start of the firm. Our results suggest that higher levels of ambitious entrepreneurship contribute more strongly to macro-economic growth than higher levels of entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. The results in this paper are interpreted in light of the ongoing debate about public policies designed to stimulate high growth firms.

In this contribution we develop a theoretical framework derived from the national system of innovation literature and the subsequent criticisms voiced by regional scientists and industry/technology experts who emphasize the importance of the intermediate subnational and sectoral levels to analysing science- and technology-based regional entrepreneurship in the Netherlands. The national system of innovation of the Netherlands, and its specifics and peculiarities, and the country’s general entrepreneurship policy, and the most important policy and support initiatives are subsequently discussed. Based on a desire to overcome the knowledge paradox between fundamental research and market needs and on the recognition that the Netherlands lags behind other countries when it comes to innovative entrepreneurship, various changes and initiatives were recently introduced in the Netherlands. The impression is of an overambitious national government with numerous programmes, schemes and agencies involved, sometimes working with each other but at other times separately as well, and its effectiveness can be questioned. Serious paperwork and preparation is involved in the participation in most programes and, together with the complexity of these programmes and policies, small and young entrepreneurs are neither informed, ready or well-equipped; some of them are not even interested in participating in those schemes.

This paper investigates to what extent determinants of the rate of independent start-ups and the rate of new subsidiaries are different. Using a regional database for the Netherlands over the period 1988–2002, we investigate the impact of two types of agglomeration effects, localization and urbanization, while controlling for a range of economic variables. We find urbanization economies to be particularly important for the creation of new subsidiaries while localization economies are more important for the creation of independent new ventures. Finally, the effect of agglomeration variables is found to be stronger for manufacturing industries compared to services industries.

In this paper we contribute to the set of studies that focus on explanations of regional differences in entrepreneurship by taking into account the entrepreneurial processes at the individual level. We investigate entrepreneurial attitudes and entrepreneurial activity in three contrasting labour market regions in the Netherlands in two stages. In the first stage we extensively explore regional differences in entrepreneurial activity by looking at several types of entrepreneurs and phases in the entrepreneurial process. In the second stage we investigate to what extent the observed regional differences in perceptions to entrepreneurship and involvement in entrepreneurial activity change when controlling for determinants at the individual level. We find that the observed regional differences in levels of early-stage entrepreneurial activity can to large extent be explained by these individual characteristics. Furthermore we find the regional pattern of overall early-stage entrepreneurial activity to be different from the pattern of ambitious early-stage entrepreneurial activity.

This paper examines the prevalence and the determinants of informal entrepreneurial investment activity (i.e. the 3 FFFs -friends, fools and family- and business angels), using a data set of more than 175,000 individuals - including some 4000 informal investors - in a large number of highly developed countries over the period 2002-2004. We distinguish between micro-level and macro-level determinants. The results uncover a positive virtuous circle where the demand for business angel finance tends to generate its own supply as a result of micro and macro factors. Our results also suggest that higher levels of entrepreneurial activity at the country level increase the probability that venture capital and business angel finance work in tandem with one another as complements rather than substitutes. Overall, the results uncover some important new relationships that perhaps provide some good news that market forces to some extent appear to naturally ameliorate equity gaps faced by entrepreneurs.

In this contribution we develop a theoretical framework derived from the national system of innovation literature and the subsequent criticisms voiced by regional scientists and industry/technology experts who emphasize the importance of the intermediate subnational and sectoral levels to analysing science- and technology-based regional entrepreneurship in the Netherlands. The national system of innovation of the Netherlands, and its specifics and peculiarities, and the country's general entrepreneurship policy, and the most important policy and support initiatives are subsequently discussed. Based on a desire to overcome the knowledge paradox between fundamental research and market needs and on the recognition that the Netherlands lags behind other countries when it comes to innovative entrepreneurship, various changes and initiatives were recently introduced in the Netherlands. The impresson is of an overambitious national government with numerous programmes, schemes and agencies involved, sometimes working with each other but at other times separately as well, and its effectiveness can be questioned. Serious paperwork and preparation is involved in the participation in most programes and, together with the complexity of these programmes and policies, small and young entrepreneurs are neither informed, ready or wellequipped; some of them are not even interested in participating in those schemes.

This explorative study investigates whether ambitions amongst nascent entrepreneurs regarding innovation matter for the national level of innovativeness. We link ambitious nascent entrepreneurship to the national level of innovativeness for 36 countries participating in the Global Entrepreneurship Monitor. We find a significant positive relation between the level of nascent entrepreneurs who intend to offer a product or service that is new to all or to some of their customers and the national technology level. This suggests that ambitions to offer new products or services may contribute to higher levels of competition and knowledge spillovers, and consequently to the emergence of highly innovative economies. Our results also suggest that this relationship is non-existent in poor countries.

This paper examines the relationship between new firm formation and regional employment change in The Netherlands. Using a new regional data base for the period 1988–2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about 6 years. Our results also suggest that the overall employment impact of new-firm start-ups is positive but that the immediate employment effects may be small in The Netherlands. Furthermore, we find that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.

Abstract This study investigates whether ambitions amongst nascent entrepreneurs regarding innovativeness matter for the national level of innovativeness. We link ambitious nascent entrepreneurship to the national level of innovativeness for 36 countries, using data from the Global Entrepreneurship Monitor. We find a significant positive relation between the level of nascent entrepreneurs who intend to offer a product or service that is new to all or to some of their customers and the national technology level. This may suggest that ambitions to offer new products or services tend to contribute to higher levels of competition and knowledge spillovers, and consequently to the emergence of highly innovative economies. Our results also suggest that this relationship is less strong in poor countries.

This paper investigates whether the presence of ambitious entrepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general. We use data from the Global Entrepreneurship Monitor to test the extent to which high growth ambitions of entrepreneurs affect GDP growth for a sample of 36 countries. Our results suggest that ambitious entrepreneurship contributes more strongly to macro-economic growth than entrepreneurial activity in general. We find a particularly strong effect of high-expectation entrepreneurship for transition countries. These results are interpreted in light of the ongoing debate about public policies designed to stimulate high growth start-ups. 124 Ekonomiaz N.o 62, 2.o Cuatrimestre, 2006.

This paper develops indicators for entrepreneurial culture and investigates their effect on the rate of nascent entrepreneurship. We choose three measures from the World Value Survey. These include two desired job characteristics, i.e. the opportunity to use initiative and the possibility to achieve something, as well as an indicator of internal locus of control as our indicators for entrepreneurial culture. Controlling for economic, institutional and demographic determinants of nascent entrepreneurship we find a positive and significant relationship between entrepreneurial culture and nascent entrepreneurship.