The Evolution of the Spatial Patterns of Startup Firms in the Tibet Autonomous Region, China in the 21st Century

Abstract

It is increasingly recognized by policymakers and the academic community that startup firms play an important role in enhancing national and regional economic competitiveness. Existing studies have focused mainly on developed countries and highly marketed city-regions in developing countries, lacking sufficient attention to underdeveloped regions. The Tibet Autonomous Region (TAR) is the poorest province in post 1949 ‘New China’. In recent years, the TAR’s government has released a series of policies to encourage the establishment and development of startup firms, but understanding how to promote social development and economic growth through the creation and development of startup firms is still a significant issue for the TAR’s government. Therefore, taking Tibet as a case area, this article discusses the evolution of the spatial patterns of startup firms in underdeveloped regions in China. The findings include: ① The past two decades have witnessed tremendous growth in the number of startup firms; however, the number and rate of growth are not geographically even. ② In terms of geographical distribution, startup firms in the TAR have concentrated on or around key nodes along major transport corridors (place dependence); however, with the development of transportation infrastructure and development zones, they have also been established in new localities (place creation). ③ Although all subregions of the TAR have spatial agglomerations of startup firms, they are different in agglomeration characteristics. Finally, after acknowledging shortcomings in its research, this article calls for multi-sited research to investigate the diversity of the spatial patterns and dynamics of new firm formation in the underdeveloped regions of China.