Applying the Entrepreneurial Ecosystem Concept to Regional Entrepreneurship Policy Analysis

Abstract

Given substantial regional variations in rates of productive entrepreneurship within countries, a critical task for policymakers is to identify what is influencing the generation of productive start-ups and scale-ups in different cities and regions and what policy levers can be used to improve their performance. This chapter discusses the application of Stam’s (2015) conceptual framework to the provision of place-based policy advice through case study analyses in five regions in two countries (United Kingdom and Poland). Based on a combination of quantitative data analysis and qualitative stakeholder discussions, the analysis shows that there are variations across regions in some of the dimensions of entrepreneurial ecosystems requiring most policy attention. Although some of the same policy issues occur in all or most of the regional contexts, the responses to them often need to be different. Drawing on the experiences from the case studies, the chapter discusses the strengths and weaknesses of the entrepreneurial ecosystems conceptual framework for the purpose of policy development. While offering the advantages of focusing on impactful entrepreneurship, institutional conditions, and spatial disparities and viewing policy as a holistic package, challenges include defining dimensions that correspond closely to the influences on entrepreneurship, finding sufficiently fine-grained quantitative indicators for the dimensions, and identifying which policy interventions should receive the greatest priority in a region. In addition, a sectoral differentiation will often be needed within regional entrepreneurial ecosystem analysis, and more comprehensive policy support is likely to be needed in weaker ecosystems.