Methods of analyzing the relationship between new business formation and regional development Volume 6 Jena Economic Research Papers 2012-11-26 2012 2007 2012-064 Entrepreneurship new business formation employment regional development The paper reviews the approaches that have been followed for analyzing the effect of new business formation on regional development. It begins with an outline of how start-ups may affect regional development. In dealing with different ways of empirically assessing these effects, I particularly stress the importance of indirect effects and of accounting for sufficiently long time lags. Finally, I discuss the issue of causality as well as avenues for further research about this important topic. jportal_jpjournal_00000016 2012-11-26T08:28:43.711Z 2012-11-26T08:28:22.995Z