KIBS’ and non-KIBS’ business creation and closure: evidence from the urban micro-space

Our study explores the factors influencing the creation and closure of firms in urban micro-spaces, highlighting the relationship between knowledge-intensive business services (KIBS) and non-KIBS sectors. Employing 2007–19 firm-level data from Warsaw, the capital of Poland, we uncover overlooked micro-geographical and sectoral patterns. We reveal spatial and sectoral interdependencies, highlighting the cross-sectoral effects of density and age of incumbent firms on new firm creation and closure. Our findings highlight the potential of policies supporting KIBS to generate positive multiplier effects, cultivating entrepreneurial ecosystems while accounting for micro-geographical contexts.