Historical roots of entrepreneurship-facilitating culture and innovation activity: an analysis for German regions

Figures & data

Figure 1. Regional distribution of the entrepreneurial personality profile in Germany.

Table 1. Relationship between the self-employment rate (SER) in 1925, the entrepreneurial personality fit of today’s population and current new firm formation (ordinary least squares (OLS) regression).

	Start-up rate						Entrepreneurial personality fit						Start-up rate
	I	II	III	IV	V	VI	VII	VIII	IX	X	XI	XII	XIII	XIV
SER 1925, excluding agriculture and homeworkers	0.366*** (0.114)	0.379*** (0.106)					1.110*** (0.384)	1.225** (0.484)
SER 1925, science-based industries			0.261*** (0.067)	0.215*** (0.068)					0.769*** (0.184)	0.829*** (0.209)
SER 1925, homeworkers and farmers					−0.091*** (0.033)	−0.040 (0.061)					−0.095 (0.090)	0.116 (0.189)
Entrepreneurial personality fit													0.108*** (0.035)	0.078** (0.033)
Controls	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes
R^2	0.414	0.549	0.492	0.564	0.438	0.502	0.356	0.421	0.419	0.465	0.312	0.372	0.438	0.537

Note: N = 92. Robust standard errors are shown in parentheses. ***Statistically significant at the 1% level; **statistically significant at the 5% level; *statistically significant at the 10% level. All continuous variables are log transformed (except for entrepreneurial personality fit, which assumes negative values). All models include dummies indicating the federal state the planning region is located in. Constants are not shown for brevity.

Table 2. Relationship between the self-employment rate (SER) in 1925, entrepreneurial personality fit and innovation activity today (ordinary least squares (OLS) regressions).

	Employment share of research and development (R&D) employees				Patent rate				Employment share of R&D employees		Patent rate
	I	II	III	IV	V	VI	VII	VIII	IX	X	XI	XII
SER 1925, excluding farmers and homeworkers	0.753** (0.299)	0.192 (0.253)			1.831*** (0.494)	0.863* (0.464)
SER 1925, science-based industries			0.660*** (0.158)	0.154 (0.117)			1.661*** (0.252)	1.012*** (0.222)
Entrepreneurial personality fit									0.179** (0.072)	0.040 (0.054)	0.611*** (0.163)	0.459*** (0.148)
Controls	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes
R^2	0.319	0.705	0.424	0.708	0.660	0.786	0.755	0.815	0.687	0.812	0.315	0.704

Note: N = 92. Robust standard errors are shown in parentheses. ***Statistically significant at the 1% level; **statistically significant at the 5% level; *statistically significant at the 10% level. All continuous variables are log transformed (except for entrepreneurial personality fit, which assumes negative values). All models include dummies indicating the federal state the planning region is located in. Constants are not shown for brevity.

Table 3. Relationship between the self-employment rate (SER) in 1925, the entrepreneurial personality fit of today’s population and start-up rates/innovation activities today: two-stage least squares (2SLS) instrumental variables (IV) regressions (second stage).^a

Dependent variable:	Start-up rate				Employment share of research and development (R&D) employees		Patent rate
Instrument:	SER 1925, excluding farmers and homeworkers		SER 1925, science-based industries		SER 1925, science-based industries
	I	II	III	IV	V	VI	VII	VIII
Entrepreneurial personality fit	0.329*** (0.109)	0.309*** (0.117)	0.339*** (0.091)	0.259*** (0.086)	0.858*** (0.236)	0.186 (0.119)	2.159*** (0.486)	1.221*** (0.282)
Controls	No	Yes	No	Yes	No	Yes	No	Yes
First-stage F-statistics	8.34***	6.40**	17.58***	15.77***	17.58***	15.77***	17.58***	15.77***
R^2	0.086	0.189	0.055	0.324	0.315	0.681	0.283	0.723

Notes: IV regression second stage. Robust standard errors are shown in parentheses. ***Statistically significant at the 1% level; **statistically significant at the 5% level; *statistically significant at the 10% level. All continuous variables are log transformed (except for entrepreneurial personality fit, which assumes negative values). All models include dummies indicating the federal state the planning region is located in. Constants are not shown for brevity. The coefficient estimates for the first-stage regressions are the same for the respective ordinary least squares (OLS) regressions presented in Table 1. The standard errors are only slightly different.

^aFor full tables with coefficient estimates for control variables, see Tables A8 and A9 in Appendix A in the supplemental data online.