When you want to express, where the action took place (in the shop, on the operating table, at home etc.), you can use either -에 or -에서. Which one to use depends on the verb. Most often you should use -에서. I know only two actions, that require 에: these are 있다 (to be) and 서다 (to stand). In most of the grammar books they explain, that -에 is for static verbs, -에서 is for verbs with some action.

So in this case, as in our sentence, with the verb 낳다, it feels like even according to the grammar books it should be -에서.