This paper addresses changes in capital formation by testing the importance of location factors with respect to the rate of establishment births and deaths in U.S. manufacturing, 2000–2004. A theoretical concept called “localized creative destruction” is tested as a mechanism to explain...

Attracting manufacturing investment remains a viable regional development policy. Previous research in the location literature has informed policymakers which factors are most important for attracting new firm investment. Far less is known about the dynamics of firm death and the possible...