Abstract
ABSTRACTThere is growing interest among strategy scholars and policy makers regarding the influence of diversifying and de novo firms on regional innovation activities in emerging industries. This paper examines how the population, entry, and exit of diversifying and de novo firms in regions influence regional innovation output in an emerging industry. Using longitudinal data from the U.S. ethanol industry, we find that the local population and exit of diversifying and de novo firms have differing impacts on regional innovation output. Our findings contribute to the literature on firm heterogeneity, agglomeration, and regional innovation systems.
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