{"title":"The COVID-19 Pandemic and Entrepreneurship in Germany","authors":"M. Fritsch, M. Greve, Michael Wyrwich","doi":"10.17323/2500-2597.2021.4.42.51","DOIUrl":null,"url":null,"abstract":"The COVID-19 pandemic severely affected not only incumbent firms, but also the emergence of start-ups. This paper investigates and analyzes the pandemic’s effect on new business formation, as well as business exits and insolvencies, in Germany. We find that the overall level of business registrations slightly decreased during the first year of the pandemic, but that the effect is specific to certain industries. Innovative manufacturing industries and technology-oriented services experienced an increase in the numbers of start-ups. High subsidies and a temporary suspension of important criteria obliging firms to declare insolvency weakened market selection resulting in fewer exits in 2020. The relaxation of insolvency regulations may lead to considerable numbers of ‘zombie’ firms. Generally, the pandemic re-enforced ongoing structural change, but also exerted specific effects that may be temporary in nature.","PeriodicalId":45026,"journal":{"name":"Foresight and STI Governance","volume":" ","pages":""},"PeriodicalIF":1.0000,"publicationDate":"2021-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"8","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Foresight and STI Governance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.17323/2500-2597.2021.4.42.51","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 8
Abstract
The COVID-19 pandemic severely affected not only incumbent firms, but also the emergence of start-ups. This paper investigates and analyzes the pandemic’s effect on new business formation, as well as business exits and insolvencies, in Germany. We find that the overall level of business registrations slightly decreased during the first year of the pandemic, but that the effect is specific to certain industries. Innovative manufacturing industries and technology-oriented services experienced an increase in the numbers of start-ups. High subsidies and a temporary suspension of important criteria obliging firms to declare insolvency weakened market selection resulting in fewer exits in 2020. The relaxation of insolvency regulations may lead to considerable numbers of ‘zombie’ firms. Generally, the pandemic re-enforced ongoing structural change, but also exerted specific effects that may be temporary in nature.
期刊介绍：
Foresight and STI Governance is an international interdisciplinary peer-reviewed open-access journal. It publishes original research articles, offering new theoretical insights and practical knowledge related to the following areas: strategic planning, science, technology, and innovation (STI) policy, foresight and other future studies. The journal considers articles on the following themes: - Foresight methods and best practices; - Long-term social and economic priorities for strategic planning and policy making; - Innovation strategies at the national, regional, sectoral, and corporate levels; - The development of National Innovation Systems; - The analysis of the innovation lifecycle from idea to the market; - Technological trends, breakthroughs, and grand challenges; - Technological changes and their implications for economy, policy-making, and society; - Corporate innovation management; - Human capital in STI.
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