Abstract
ABSTRACT This paper investigates the local multiplier effects in new firm creation by analysing a unique panel dataset of new firms and patents at the regional level in Australia. It finds that new firms in the tradable sector such as low-technology manufacturing and knowledge-intensive services industries have local multiplier effects on new firm creation in the non-tradable sector such as other services industries. It also shows that the local multiplier effect in new firm creation exists between manufacturing and knowledge-intensive services industries in the tradable sector. The local multipliers are greater in regions with more patents than in other regions.
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