RESEARCH UNIVERSITIES AND REGIONAL HIGH-TECH FIRM START-UP AND EXIT

Authors

  • DAKSHINA G. DE SILVA,

    1. De Silva: Associate Professor, Department of Economics, Texas Tech University, Lubbock, TX 79409. Phone (806) 742-2201, Fax (806) 742-1137, E-mail dakshina.de-silva@ttu.edu
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  • ROBERT MCCOMB

    1. Mccomb: Associate Professor, Department of Economics, Texas Tech University, Lubbock, TX 79409. Phone (806) 742-2201, Fax (806) 742 1137, E-mail robert.mccomb@ ttu.edu
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    • We would like to thank Hojin Jung and Anita Schiller for their skillful research assistance and the Texas Workforce Commission for providing the data. We are also indebted to Georgia Kosmopoulou, George Deltas, Geoffrey Hewings, IIOC 2007 Conference participants, and two anonymous referees for valuable comments and suggestions.


Abstract

If localized knowledge spillovers are present in the university setting, higher rates of both start-up and/or survival would be observed in areas that are geographically proximate to the university. Using a detailed industry data set for Texas for 1999:3–2005:2, we analyze start-up and exit rates for high-tech firms. Based on a Poisson quasi-maximum likelihood estimation, we find evidence that the level of R&D and proximity of a research institution positively affects the likelihood of technology start-ups. However, using both the Cox proportional hazards model and Kaplan–Meier approach, our results suggest that geographic proximity to knowledge centers does not reduce hazard rates. (JEL R12, R53, O18)

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