Regional clusters in Germany--their geography and their relevance for entrepreneurial activities

Abstract

The aim of this paper is to identify regions with industrial clusters in Germany and to analyse their entrepreneurial environment. A new index employing industry data supplied from the German Federal Labour Office is used to elaborate on spatial clusters in the most concentrated German industries. A second data set collected as part of the Global Entrepreneurship Monitor (GEM), serves to assess the relationship between regional clusters and entrepreneurial activities and attitudes. The paper tests the rather popular but hitherto seldomly empirically-proven hypothesis that the existence of one or several industrial cluster(s) in a region has a positive impact on the number of start-ups and attitudes in the very same region. The implications of the findings with respect to regional policies encouraging industrial clusters are discussed briefly in the concluding section.