Entrepreneurship and Regional Economic Development: A Spatial Perspective (original) (raw)
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Regional Trajectories of Entrepreneurship and Growth
From Industrial Organization to Entrepreneurship, 2019
The development of regions is considerably shaped by their history. We review research that finds significant persistence of regional levels of entrepreneurship over longer periods of time. It is argued that the long term persistence of regional entrepreneurship indicates the presence and effect of a culture of entrepreneurship that is conducive to new business formation and regional growth. Hence, regional development is characterized by long term trajectories of entrepreneurship. We derive a number of policy implications and propose avenues for further research. The Important Role of Entrepreneurship for Innovation and Growth The effect of entrepreneurship on innovation and growth is a key topic on David Audretsch's research agenda. In our contribution to this Festschrift for David we reflect on our related work on regional trajectories of entrepreneurship, knowledge, and growth (Fritsch and Wyrwich 2019). Specifically, this includes the roles of history and culture in regional development. We review empirical work that shows the long-lasting effects of historical levels of self-employment and innovation on new business formation, innovation, and growth many decades later. It is argued that historical developments can cultivate certain cultural traits and personal attitudes in the local population that shape developments today. In what follows we first review the empirical evidence on persistence of regional levels of entrepreneurship and growth (section "The Long-Term Persistence of Regional Levels of Entrepreneurship"). We then show how historical levels of
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The Annals of Regional Science, 2018
Theoretical background Entrepreneurship, with product and process innovation as especially important subsets, is at the core of the regional development process. But the term "entrepreneurship" can mean different things, especially in empirical studies of entrepreneurial phenomena. Among theories attempting to treat the topic with more theoretical rigour, there are three classic treatises that have stood the test of time. Joseph Schumpeter's innovationdriven theory of economic development (Schumpeter 1934), which first appeared in German in 1912 (Schumpeter 2006), focuses on disruptive innovations that cause disequilibrating shocks to the economic system as the cause of economic development and as symptomatic of dynamic capitalism. In Schumpeter's narrative, the entrepreneur is a heroic figure who singlehandedly brings about change through the introduction of new combinations of land and labour (with capital treated as a mixture of land and labour). Steve Jobs' innovation of the MacIntosh personal computer and, later, iPhone and Mark Zuckerberg's innovation of Facebook are examples that can illustrate the Schumpeterian theory, but it would be misleading to apply it to the more mundane and quantitatively numerous business start-ups and incremental innovations that are the mainstay of empirical entrepreneurship studies. Frank Knight (1921) offered the next major work of entrepreneurial theory, where he describes the entrepreneur as anyone who exercises judgment and shoulders nonprobabilistic uncertainty (i.e. "Knightian uncertainty") when making future-directed decisions. The key distinction is between the maximizing approach typical of much formal economic theorizing and decision-making that cannot be optimized because the future states of the world cannot be known-not even the number of possible future states can be known. Thus, the entrepreneurs must exercise a non-quantifiable B David Emanuel Andersson
Entrepreneurship and economic performance: a macro perspective
International Journal of …, 2002
The present paper provides a theoretical framework of the relationship between rate of entrepreneurship and national economic performance. The first part deals with some aspects of the recent economics literature on the relation between entrepreneurship and small business, on the one hand, and economic growth, on the other. In particular, it gives a summary of some work of the EIM/CASBEC research group in the Netherlands. In the second part a framework is presented linking entrepreneurship and growth at different levels of aggregation. The last part of the paper illustrates the framework with some historical case studies. The present paper supplements Wennekers, Uhlaner and Thurik which is concerned with the causes of the rate of entrepreneurship.