Abstract

“Which is the engine of regional growth – large, established enterprises or new firm startups?” This question was posed by Audretsch and Fritsch’s (2002) when they introduced the concept of regional growth regimes, and defined four different regimes: entrepreneurial, routinized, revolving door and downsizing. The existence of different regional growth in a country is not a trivial issue. Public policies designed to foster entrepreneurship, under the assumption that different regions may have the same entrepreneurial drive, can end up being ineffective and wasting resources (Van Stel and Storey, 2004). Thus, the aim of our study is to identify the presence of different regional growth regimes in Brazil, as well as the dynamics of these regimes over time. We posed three questions: a)Are there different growth regimes in Brazilian regions? b) What are the control variables that help to explain the emergence, persistence or change of different growth regimes; c) How does the regimes evolve over time?

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