In this paper, we investigate the recent trend of regional entrepreneurship of 16 cities and provinces in Korea after 2000. In addition we analyze the impact of determinants on regional entrepreneurship. The recent overall trend of entrepreneurship sh...
In this paper, we investigate the recent trend of regional entrepreneurship of 16 cities and provinces in Korea after 2000. In addition we analyze the impact of determinants on regional entrepreneurship. The recent overall trend of entrepreneurship shows a quite drastic decline in 2008. Specially, it is observed that larger cities show more drastic shrinks in entrepreneurship comparing to previous years. We also confirm four major determinants such as R&D, protecting ownership, industrial diversity, and the size of local government that are statistically significant. We suggest some empirical evidence for that entrepreneurship is positively related with enhancing R&D activities and ownership right through patent. It is also found that the faster growth of local government expenditure than the growth of GRDP deters entrepreneurship manifestation. However, we have a significant yet mixed sign on the coefficient of the industrial diversity. Even if the industrial diversity seems to have no statistically significant impact on regional entrepreneurship, we provide some empirical evidence that it fosters the activities of privately owned small businesses while the industrial concentration does those of corporate firms