Highspeed internet access is a key pre-requisite for new services to households such as Video on Demand. Moreover, it might also be a low-budget alternative for emerging enterprises with comparably low data volumina. While established enterprises require constant highspeed download and upload rates and, consequently, demand customized services or leased lines, standard household (a)DSL access is usually sufficient for young start-ups.
Combining county-level start-up data and data on broadband roll-out we analyze the effect of broadband on start-up activities in alternative sectors. Our approach is an extension on micro-level start-up models known from the economic literature as we control for well-known standard impact parameters on start-ups like proximity to universities and more established companies or the availability of further infrastructures.