Start-up Dynamics In Japan: Comparative Evidence From the Dynemp v.2 Database

Abstract

The present paper describes the patterns of entry and post-entry growth in the Japanese manufacturing sector over the 2001–2007 period, pointing to similarities and differences with other countries. The paper also presents a detailed characterization of start-up dynamics at a more detailed (two-digit) sectoral level within the manufacturing sector. The analysis shows that in Japan the entry and growth of start-ups contribute relatively little to net job creation, as compared to other countries. The main reasons are a particularly low start-up rate and a growth rate of surviving new businesses that is among the lowest in the sample of countries analysed.