Entrepreneurial culture, regional innovativeness and economic growth

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper presents the results of an e mpirical study on the relationship between entrepreneurial culture, regional rates of innovation and regional economic growth. Recent literature mainly in regional science and economic geography has emphasized the role of an entrepreneurial culture in explaining the economic success of regions. Most of these contributions are however conceptual or case-based. Building on Leibenstein's view of the entrepreneur as the 'input completer' and the Austrian school in which entrepreneurial activity is attributed a central role I hypothesize that regions which can be characterized as having an entrepreneurial culture are more innovative and grow faster. I use a standard economic growth model and test this hypothesis on a sample of 54 European regions. The results confirm the importance of an entrepreneurial culture. Keywords:entrepreneurship, culture, innovation, regional economic growth JEL code: Z1, R11Acknowledgement:

Social progress orientation and innovative entrepreneurship: an international analysis

“…On the one hand, innovative entrepreneurship impacts life satisfaction, and this impact is characterized by an inverted U-shaped relationship. Similar analysis has found this at a regional level, since it has been argued that hard work and high-ambition generate a better life (Beugelsdijk 2007;Bosma 2009). As a result, innovative entrepreneurial activity and entrepreneurship driven by opportunity lead to life satisfaction and happiness (Binder and Coad 2013;Block and Koellinger 2009), until a certain point is reached where an excess of these types of entrepreneurial activity can lead to highly competitive market conditions and to dissatisfaction.…”

“…In this context, the entrepreneur is seen as the agent of change who can contribute toward progress and technology transformation through innovation (Teece 1986). Thus, entrepreneurial activity is a valid conduit for the establishment of new activities that promote economic performance and new jobs, as well as ensuring the well-being of society at regional and national levels (Acs et al 2012;Avlonitis and Salavou 2007;Beugelsdijk 2007;Busenitz et al 2003;Carlsson et al 2013;Díaz et al 2013;Feldman 2014;Ribeiro Soriano and Peris-Ortiz 2011;Urbano and Aparicio 2016;van Praag and Versloot 2007;Wennekers and Thurik 1999). Examining the factors that encourage innovative entrepreneurial activity has attracted the interest of academics and others in different fields and with different perspectives (Audretsch 2012;Shane and Venkataraman 2000;Thornton et al 2011;Veciana and Urbano 2008;Verheul et al 2002).…”

“…In light of this definition, it is possible to link this dimension with the social capital approach (Foa 2011). The existing literature has recognized the positive impact of social capital on innovative entrepreneurial activity (Beugelsdijk 2007;Davidsson and Honig, 2003;Kim and Kang 2014;Leyden and Link 2015;Schulz and Baumgartner 2013). According to Casson and Della Giusta (2007), the analysis of the entrepreneurship process (opportunity seeking, creation of new products, acquisition of resources and access to new or existing markets) can help in understanding the mechanism behind the promoting effect of social capital on innovative entrepreneurial activity.…”

“…According to Casson and Della Giusta (2007), the analysis of the entrepreneurship process (opportunity seeking, creation of new products, acquisition of resources and access to new or existing markets) can help in understanding the mechanism behind the promoting effect of social capital on innovative entrepreneurial activity. Entrepreneurs with access to social capital (clubs, associations, informal networks and other meetings) can also gain access to information about entrepreneurial culture and opportunities and thus take measures to exploit them in different regions (Audia et al 2006;Bauernschuster et al 2010;Beugelsdijk 2007;Kwon et al 2013). Others suggest that the trust gained through social capital is key for the acquisition of the financial, material and intangible resources that entrepreneurs otherwise do not possess (Liao and Welsch 2005;Teckchandani 2014).…”

Local Competitiveness Fostered through Local Institutions for Entrepreneurship

“…The wellknown and highly influential study by Saxenian (1994), for example, argued that a prime reason for the success of the Silicon Valley region in California vis-à-vis Route 128 around Boston was to be found in the favorable local or regional "entrepreneurship culture" in Silicon Valley. The concept of regional entrepreneurship culture is often employed to the level of social acceptance and encouragement of entrepreneurs and their activities (see, e.g., Wyrwich 2012 andBeugelsdijk 2007). We may think of such a culture as a type of local informal institution.…”