Historical roots of entrepreneurship-facilitating culture and innovation activity: an analysis for German regions

There is a research gap with respect to understanding the role of cultural attitudes in favour of entrepreneurial activity for actual start-up behaviour. The paper combines historical self-employment data with a psychological measure for entrepreneurial attitudes. The results reveal a positive relationship between the historical level of self-employment in a region and the presence of people with an entrepreneurial personality structure today. This measure is positively related not only to the level of new business formation but also to the amount of innovation activity.