Entrepreneurial ecosystems in cities: establishing the framework conditions
TL;DR: In this article, the authors focus on regional entrepreneurial ecosystems and offer a complex model of start-ups, Regional Entrepreneurship and Development Index (REDI) and six domains of the entrepreneurial ecosystem (culture, formal institutions, infrastructure and amenities, IT, Melting Pot and demand).
Abstract: This study focuses on regional entrepreneurial ecosystems and offers a complex model of start-ups, Regional Entrepreneurship and Development Index (REDI) and six domains of the entrepreneurial ecosystem (culture, formal institutions, infrastructure and amenities, IT, Melting Pot and demand). Altogether they capture the contextual features of socioeconomic, institutional and information environment in cities. To explain variations in entrepreneurship in a cross-section of 70 European cities, we utilize exploratory factor analysis and structural equation modelling for regional systems of entrepreneurship using individual perception surveys by Eurostat and the REDI. This study supports policymakers and scholars in development of new policies conducive to regional systems of innovation and entrepreneurship and serves as a basis for future research on urban entrepreneurial ecosystems.
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TL;DR: In this paper, the authors examine the relationship between entrepreneurial ecosystems and other existing literatures such as clusters and regional innovation systems and suggest that a process-based view of ecosystems provides a better framework to understand their role in supporting new venture creation.
Abstract: Research Summary: Entrepreneurial ecosystems have recently emerged as a popular concept within entrepreneurship policy and practitioner communities. Specifically, they are seen as a regional economic development strategy that is based around creating supportive environments that foster innovative start-ups. However, existing research on entrepreneurial ecosystems has been largely typological and atheoretical and has not yet explored how they influence the entrepreneurship process. This article critically examines the relationships between ecosystems and other existing literatures such as clusters and regional innovation systems. Drawing on this background, the article suggests that a process-based view of ecosystems provides a better framework to understand their role in supporting new venture creation. This framework is used to explain the evolution and transformation of entrepreneurial ecosystems and to create a typology of different ecosystem structures.
Managerial Summary: Entrepreneurial ecosystems are a new buzzword within research and managerial circles. They represent the types of cultural, social, economic, and political environments within a region that support high-growth entrepreneurship. But current research does little more than look at successful ecosystems to identify best practices. This article examines what we know about entrepreneurial ecosystems and links them with existing theories like clusters and regional innovation systems. We argue that successful and unsuccessful entrepreneurship within an ecosystem generates critical entrepreneurial resources like investment capital, skilled workers, and entrepreneurial knowledge. This, in turn, supports future high-growth venture creation. The types of resources available in an ecosystem and the ability of these resources to flow through social networks helps separate strong, well-functioning ecosystems from weak, poorly functioning ones.
477 citations
Cites background from "Entrepreneurial ecosystems in citie..."
...…the attributes of successful ecosystems and exploring how they support high-growth entrepreneurship (Acs et al., 2014; Alvedalen and Boschma, 2017; Audretsch and Belitski, 2016; Auerswald, 2015; Autio et al., 2014; Mack and Mayer, 2015; Motoyama and Knowlton, 2016; Qian, 2016; Spigel, 2017; Stam…...
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TL;DR: The concept of entrepreneurial ecosystems has quickly established itself as one of the latest ‘fads' in entrepreneurship research as discussed by the authors, however, its lack of specification and conceptual limitations has undoubtedly hindered our understanding of these complex organisms.
Abstract: The concept of entrepreneurial ecosystems has quickly established itself as one of the latest ‘fads’ in entrepreneurship research. At face value, this kind of systemic approach to entrepreneurship offers a new and distinctive path for scholars and policy makers to help understand and foster growth-oriented entrepreneurship. However, its lack of specification and conceptual limitations has undoubtedly hindered our understanding of these complex organisms. Indeed, the rapid adoption of the concept has tended to overlook the heterogeneous nature of ecosystems. This paper provides a critical review and conceptualisation of the ecosystems concept: it unpacks the dynamics of the concept; outlines its theoretical limitations; measurement approaches and use in policy-making. It sets out a preliminary taxonomy of different archetypal ecosystems. The paper concludes that entrepreneurial ecosystems are a highly variegated, multi-actor and multi-scalar phenomenon, requiring bespoke policy interventions.
408 citations
Cites background from "Entrepreneurial ecosystems in citie..."
...However, the majority of observers view ecosystems primarily as a spatial concept (Feldman and Braunerhjelm, 2006; Mason and Brown, 2014; Audretsch and Belitski, 2016) to explain why certain places have high levels of entrepreneurial activity (Spigel, 2015; Stam, 2015)....
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...Indeed, the fusion of these diverse perspectives is perhaps its strongest asset but at the same time makes definitional and measurement issues extremely problematic (Audretsch and Belitski, 2016)....
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...diverse perspectives is perhaps its strongest asset but at the same time makes definitional and measurement issues extremely problematic (Audretsch and Belitski, 2016)....
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...Given the increasing attention being paid to the concept by scholars (Mason and Brown, 2014; Audretsch and Belitski, 2016) Small Bus Econ...
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...Given the increasing attention being paid to the concept by scholars (Mason and Brown, 2014; Audretsch and Belitski, 2016) R. Brown (*) Centre for Responsible Banking and Finance, School of Management, University of St Andrews, St Andrews, UK e-mail: Ross.Brown@st-andrews.ac.uk C. Mason Adam Smith…...
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TL;DR: A review of the literature, concepts, and operationalizations of the concept of entrepreneurial ecosystems can be found in this article, where the authors address several specific topics: the choice of scale, universities as ecosystem hubs, and how such ecosystems evolve.
Abstract: This paper reviews the literature, concepts, and operationalizations of the concept of entrepreneurial ecosystems. Despite some interest at the national level, entrepreneurship is understood to take place in localities or, at most, regions, drawing on local resources, institutions, and networks. Bibliometric evidence shows that usage of the term entrepreneurial ecosystem has overtaken other concepts, such as environments for entrepreneurship, which also highlight the mechanisms, institutions, networks, and cultures that support entrepreneurs. This review addresses several specific topics: the choice of scale, universities as ecosystem hubs, and how such ecosystems evolve. This is followed by suggestions toward an agenda for future research, placing particular attention on methodologies.
335 citations
Cites background from "Entrepreneurial ecosystems in citie..."
...1766) Audretsch and Belitski (2017) We define systems of entrepreneurship (further ecosystem) as institutional and organizational as well as other systemic factors that interact and influence identification and commercialization of entrepreneurial opportunities....
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...1766) Audretsch and Belitski (2017) We define systems of entrepreneurship (further ecosystem) as institutional and organizational as well as other systemic factors that interact and influence identification and commercialization of entrepreneurial opportunities. (p. 2) Cukier et al. (2016) We define a start‐up ecosystem as a “limited region within 30 miles (or 1‐hr travel) range, formed by people, their start‐ups, and various types of supporting organizations, interacting as a complex system to create new start‐up companies and evolve the existing ones....
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TL;DR: In this paper, the authors present a critical review on the entrepreneurial ecosystem, starting from its very definition and antecedents, and develop an original set of guidelines that can help scholars and practitioners seeking an answer to the following pressing question: "How can we gain a comprehensive understanding of an entrepreneurial ecosystem?"
Abstract: The purpose of this article is to review the emerging research on entrepreneurial ecosystem and to guide future research into this promising area. The study presents a critical review on the entrepreneurial ecosystem, starting from its very definition and antecedents. Combining prior research with building on the main concepts that constitute an entrepreneurial ecosystem, we have developed an original set of guidelines that can help scholars and practitioners seeking an answer to the following pressing question: “How can we gain a comprehensive understanding of an entrepreneurial ecosystem?”. We will then discuss the opportunities for expanding our current knowledge on entrepreneurial ecosystems and describe the current debates and directions for future research. Lastly, we will provide guidelines that policymakers may take into consideration when designing and issuing support measures to promote entrepreneurship in their local ecosystems.
242 citations
TL;DR: This special issue is a first attempt to trace the ‘ecosystem’ discussion back to its roots—the ancient oikos, coined by the Greek philosopher Hesiod (700 BC), and aims to critically reflect on the usage of the term’, briefly summarize the extant literature and grasp the main features of entrepreneurial ecosystems, namely the economic, technological, and societal dimensions of entrepreneurial ecosystem.
Abstract: Despite the overwhelming use of the metaphor ‘ecosystem’ in academia, industry, policy, and management, exact definitions of what ‘ecosystems’ really comprise are scarce and often inconsistent. Existing vague descriptions in the literature do not consider the boundaries of respective agglomerations, hence, they impede the evaluation of performance and outcome measures of respective ecosystems. This special issue is a first attempt to trace the ‘ecosystem’ discussion back to its roots—the ancient oikos, coined by the Greek philosopher Hesiod (700 BC), and aims to critically reflect on the usage of the term ‘ecosystem’, briefly summarize the extant literature and grasp the main features of entrepreneurial ecosystems, namely the economic, technological, and societal dimensions of entrepreneurial ecosystems. We intend to focus on the key elements that characterize an ecosystem, and hence, untangle under what conditions entrepreneurial firms shape and influence economic, technological, and societal thinking within their ecosystem.
207 citations
References
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Book•
01 Jan 1990TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Abstract: Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that produce stagnation. North first explores the nature of institutions and explains the role of transaction and production costs in their development. The second part of the book deals with institutional change. Institutions create the incentive structure in an economy, and organisations will be created to take advantage of the opportunities provided within a given institutional framework. North argues that the kinds of skills and knowledge fostered by the structure of an economy will shape the direction of change and gradually alter the institutional framework. He then explains how institutional development may lead to a path-dependent pattern of development. In the final part of the book, North explains the implications of this analysis for economic theory and economic history. He indicates how institutional analysis must be incorporated into neo-classical theory and explores the potential for the construction of a dynamic theory of long-term economic change. Douglass C. North is Director of the Center of Political Economy and Professor of Economics and History at Washington University in St. Louis. He is a past president of the Economic History Association and Western Economics Association and a Fellow, American Academy of Arts and Sciences. He has written over sixty articles for a variety of journals and is the author of The Rise of the Western World: A New Economic History (CUP, 1973, with R.P. Thomas) and Structure and Change in Economic History (Norton, 1981). Professor North is included in Great Economists Since Keynes edited by M. Blaug (CUP, 1988 paperback ed.)
27,080 citations
Posted Content•
TL;DR: In this article, the authors examine the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time.
Abstract: Examines the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time. Institutions are separate from organizations, which are assemblages of people directed to strategically operating within institutional constraints. Institutions affect the economy by influencing, together with technology, transaction and production costs. They do this by reducing uncertainty in human interaction, albeit not always efficiently. Entrepreneurs accomplish incremental changes in institutions by perceiving opportunities to do better through altering the institutional framework of political and economic organizations. Importantly, the ability to perceive these opportunities depends on both the completeness of information and the mental constructs used to process that information. Thus, institutions and entrepreneurs stand in a symbiotic relationship where each gives feedback to the other. Neoclassical economics suggests that inefficient institutions ought to be rapidly replaced. This symbiotic relationship helps explain why this theoretical consequence is often not observed: while this relationship allows growth, it also allows inefficient institutions to persist. The author identifies changes in relative prices and prevailing ideas as the source of institutional alterations. Transaction costs, however, may keep relative price changes from being fully exploited. Transaction costs are influenced by institutions and institutional development is accordingly path-dependent. (CAR)
26,011 citations
Book•
01 Jan 1890
TL;DR: In this article, the authors present a survey of the general relations of demand, supply, and value in terms of land, labour, capital, and industrial organization, with an emphasis on the fertility of land.
Abstract: BOOK I: PRELIMINARY SURVEY 1. Introduction 2. The Substance of Economics 3. Economic Generalizations or Laws 4. The Order and Aims of Economic Studies BOOK II: SOME FUNDAMENTAL NOTIONS 1. Introductory 2. Wealth 3. Production, Consumption, Labour, Necessaries 4. Income. Capital. BOOK III: ON WANTS AND THEIR SATISFACTION 1. Introductory 2. Wants in Relation to Activities 3. Gradations of consumers' demand 4. The elasticity of wants 5. Choice between different uses of the same thing. Immediate and deferred uses. 6. Value and utility BOOK IV: THE AGENTS OF PRODUCTION. LAND, LABOUR, CAPITAL AND ORGANIZATION T 1. Introductory 2. The Fertility of Land 3. The Fertility of Land, continued. The Tendency to Diminishing Return. 4. The Growth of Population 5. The Health and Strength of the Population 6. Industrial Training. 7. The Growth of Wealth 8. Industrial Organization 9. Industrial Organization, continued. Division of Labour. The Influence of Machinery 10. Industrial Organization, continued. The Concentration of the Specialized Industries in Particular Localities. 11. Industrial Organization, continued. Production on a Large Scale 12. Industrial Organization, continued. Business Management. 13. Conclusion. Correlation of the Tendencies to Increasing and to Diminishing Return BOOK V: GENERAL RELATIONS OF DEMAND, SUPPLY, AND VALUE 1. Introductory. On Markets. 2. Temporary Equilibrium of Demand and Supply 3. Equilibrium of Normal Demand and Supply 4. The Investment and Distribution of Resources 5. Equilibrium of Normal Demand and Supply, continued, with reference to long and short periods 6. Joint and Composite Demand. Joint and Composite Supply 7. Prime and total cost in relation to joint products. Cost of marketing. Insurance against risk. Cost of Reproduction. 8. Marginal costs in relation to values. General Principles. 9. Marginal costs in relation to values. General Principles, continued 10. Marginal costs in relation to agricultural values 11. Marginal costs in relation to urban values 12. Equilibrium of normal demand and supply, continued, with reference to the law of increasing return 13. Theory of changes of normal demand and supply, in relation to the doctrine of maximum satisfaction 14. The theory of monopolies 15. Summary of the general theory of equilibrium of demand and supply BOOK VI: THE DISTRIBUTION OF THE NATIONAL INCOME 1. Preliminary survey of distribution 2. Preliminary survey of distribution, continued 3. Earnings of labour 4. Earnings of labour, continued 5. Earnings of labour, continued 6. Interest of capital 7. Profits of capital and business power 8. Profits of capital and business power, continued 9. Rent of land 10. Land tenure 11. General view of distribution 12. General influences of progress on value 13. Progress in relation to standards of life
11,519 citations
Posted Content•
TL;DR: In this article, the authors discuss points of convergence and disagreement with institutionally oriented research in economics and political science, and locate the "institutional" approach in relation to major developments in contemporary sociological theory.
Abstract: Long a fruitful area of scrutiny for students of organizations, the study of institutions is undergoing a renaissance in contemporary social science. This volume offers, for the first time, both often-cited foundation works and the latest writings of scholars associated with the "institutional" approach to organization analysis. In their introduction, the editors discuss points of convergence and disagreement with institutionally oriented research in economics and political science, and locate the "institutional" approach in relation to major developments in contemporary sociological theory. Several chapters consolidate the theoretical advances of the past decade, identify and clarify the paradigm's key ambiguities, and push the theoretical agenda in novel ways by developing sophisticated arguments about the linkage between institutional patterns and forms of social structure. The empirical studies that follow—involving such diverse topics as mental health clinics, art museums, large corporations, civil-service systems, and national polities—illustrate the explanatory power of institutional theory in the analysis of organizational change. Required reading for anyone interested in the sociology of organizations, the volume should appeal to scholars concerned with culture, political institutions, and social change.
8,449 citations
TL;DR: In this article, a selection of fit indices that are widely regarded as the most informative indices available to researchers is presented, along with guidelines on their use and strategies for their use.
Abstract: The following paper presents current thinking and research on fit indices for structural equation modelling. The
paper presents a selection of fit indices that are widely regarded as the most informative indices available to researchers.
As well as outlining each of these indices, guidelines are presented on their use. The paper also provides reporting
strategies of these indices and concludes with a discussion on the future of fit indices.
7,904 citations