Spatial Concentration of Industries and New Firm Exits: Does this Relationship Differ between Exits by Closure and by M&A?

Weterings A. and Marsili O. Spatial concentration of industries and new firm exits: does this relationship differ between exits by closure and by M&A?, Regional Studies. This study shows that the effect of the spatial concentration of industries on the post-entry hazards of new firms differs by type of exit, and by industry. New firms located in regions with a higher relative concentration of firms in the same industry are less likely to exit by closing activities and more likely to exit by mergers and acquisitions (M&As). While localization economies that favour new firms' survival or a potentially successful exit through M&As are dominant in manufacturing, new firms in business services also experience increasing competition from new entrants that lowers the likelihood of survival and exit through M&As.