We investigate the determinants of the sectoral variety of newborn firms in different regional contexts. Based on the knowledge spillovers theory of entrepreneurship, we study the role of different dimension of knowledge variety, i.e. technological diversity and cultural diversity. This latter is measured with respect to the nationality of both foreign residents and foreign entrepreneurs.
We use a unique dataset stemming from the combination of different sources of information. The results confirm that all the dimensions of knowledge variety are relevant in shaping the sectoral
variety of newborn firms and point to the differential contribution of immigrant entrepreneurs in fostering the sectoral diversification in unrelated activities.
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