Spinoff dynamics beyond clusters: pre-entry experience and firm survival in peripheral regions

This paper investigates local spinoff dynamics in manufacturing industries in peripheral areas. It focuses on the question whether local inheritance of competences and routines from parent firm to spinoff is also relevant for firm survival in peripheral areas. The analysis is based on a unique data-set, tracking all manufacturing firms at five observation points during the time span of 1980-2004 in two case study regions in Switzerland. The results show that the local inheritance of capabilities gives spinoffs a competitive advantage in peripheral regions as well. Further, the findings suggest that spinoff dynamics differ between different types of peripheral regions, depending on their varying local economic conditions. Finally, spinoff dynamics in the periphery might be characterized by a stronger hostility of larger parent firms towards spinoffs. This research adds a distinct peripheral perspective to the entrepreneurial heritage literature and advocates for a more nuanced discussion on spinoff dynamics in varying geographical settings.