An ecological perspective on entrepreneurship in industrial districts

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Abstract
The model of industrial districts postulates that business foundings are driven by co–operative and competitive processes. These dynamic processes reflect inter–firm learning, operational flexibility, and constant innovation, and are seen as the source of a district's economic vitality. However, empirical studies have usually followed static research designs and investigators have tended to make dynamic inferences from cross–sectional data. In this study, the author draws on organizational ecological theory to test hypotheses concerning temporal variations in the relationship between co–operation, competition, and business founding rates in a textile–clothing district in Germany.