The effect of new business formation on regional development – Empirical evidence, interpretation, and avenues for further research Volume 5 Jena Economic Research Papers 2011-02-02 2011 2007 2011-006 Entrepreneurship new business formation employment regional development This paper reviews the current state of knowledge about the effect of new business formation on regional development. After a brief sketch of the origins of research on this issue, the main results of different lines of inquiry are discussed. Main issues are the development of start-up cohorts, the relative magnitude of direct and indirect effects, and results by type of entry and by industry, as well as differences in the effects that have been found for different types of regions. After interpreting the results based on a common framework, I put forward a number of important questions for further research and draw some conclusions for entrepreneurship policy. jportal_jpjournal_00000016 2011-02-02T09:46:11.673Z 2011-02-02T09:45:45.391Z