Localization of knowledge and entrepreneurs’ mobility: the case of Germany’s biotechnology industry

Abstract

In this paper we analyse the location choice of mobile entrepreneurs for the example of Germany’s biotechnology industry. In fact, 37.5 per cent of all founders of biotech firms within a planning region immigrated from another planning regions. The results of our econometric analysis indicate that only the number of immigrated scientific entrepreneurs increases with the difference in the number of researchers as well as the amount of third-party funds acquired by public research units between the receiving and sending entity. We conclude that the size and the excellence of localized knowledge base imply a positive selection of attracted entrepreneurs.