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Quite a number of earlier studies have found that the majority of new technology-based firms are spin-offs from existing organizations, usually established in the geographical neighborhood of the parent (Dorfman 1983; Roberts 1991; Saxenian 1994; Sternberg 1996; Keeble 1997; Lindholm Dahlstrand 1997, 2001; Lindholm Dahlstrand and Dahlander 2003). Since established corporations are responsible for

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We trace the relationship between changes in the supply of capabilities from Chalmers University of Technology and the extent and nature of technology-based entrepreneurship in the region of Western Sweden in the period 1975-1993. Changes in the supply of capabilities are approximated by changes in volumes and orientation of graduates at MSc and PhD levels. The knowledge base of 539 new technology