Entrepreneurial Ecosystems and Regional Policy_Stam Pecs conference University Based Entrepreneurship and Regional Development

Entrepreneurial Ecosystemsand Regional Policy

Erik Stam

International Conference on University-Based Entrepreneurship and Regional Development (ICUBERD)Theory, Empirics and Practical Implementation

Pecs, Hungary, December 2, 2016

Entrepreneurial Ecosystems

Reflects three shifts:

Societal: from Managed Economy to Entrepreneurial Economy (Thurik, Stam & Audretsch 2013)

Policy: from the quantity of entrepreneurship to the quality of entrepreneurship (Stam et al 2012)

Scientific: from equilibrium economics tocomplexity economics (Beinhocker 2007)

…contextual approaches to entrepreneurship (Stam 2010)

…ecological approaches to business strategy (Adner 2012)

Entrepreneurial Ecosystem Approachthe other 3S

I. Has the promise of synthesizing prior academic work on entrepreneurship & regional development

II. Might provide a more systemic view on howregions evolve, and the key role of ambitiousentrepreneurship in this

III. Provides a new perspective on the role of the different stakeholders involved in theecosystem

Entrepreneurial Ecosystem

• a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory (Stam & Spigel 2016)

I. Synthesis of academic work on entrepreneurship & regional

development

Entrepreneurship & regional development: academic evidence base

• Talent

• Knowledge

• Capital

• Intermediate services

• Networks

Fundamental causes of long term economic growth:

• Institutions (formal, informal)

• Physical infrastructure

• Effective demand

Formal institutions

Framework conditions

Systemicconditions

Culture

Networks Leadership Finance Talent

Physical infrastructure

Demand

New knowledge

Innovativestart-ups

High-growthstart-ups

Entrepreneurial employee activity

Productivity Income Employment Well-being

Support services / intermediaries

Value creation

Outcomes

Outputs

Entrepreneurial activity

Entrepreneurial Ecosystem Elements

Entrepreneurial EcosystemsResearch Synthesis

• Accumulation of knowledge, instead of fads and fashions (including the EE approach…)

II. Systemic view on how regions evolve, and the key role of

ambitious entrepreneurship

Formal institutions


Systemicconditions

CulturePhysical

infrastructureDemand

Aggregate Value CreationOutcomes

Outputs Entrepreneurial Activity


Networks Leadership Finance Talent KnowledgeSupport services / intermediaries

Entrepreneurial Ecosystem as a Complex System:• Non-linear causal relations

– emergence, randomness, impossible to predict long-term– but: ‘chance’ favours the prepared region…

• Feedback effects– long term evolution

• Interdependence of elements – penalty for bottleneck

International Conference on University-Based Entrepreneurship and Regional

Development (ICUBERD)

Formal institutions


Systemicconditions

Culture



Demand

New knowledge



The framework conditions that enable/constrain the development and interaction of actors in the entrepreneurial ecosystem

Formal institutions


Systemicconditions

Culture



Demand

New knowledge



Hermann Hauser - Cambridgeshire

1978

Formal institutions


Systemicconditions

Culture



Demand

New knowledge




19981997

Cambridgeshire high-tech economy

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high-tech establishments high-tech employment

Entrepreneurial Ecosystem Elementen

Formal institutions

Culture



Demand

New knowledge




Two types of people: leaders (entrepreneurs) and feeders (people who support startups, such as government agencies, funders, service providers). While the "feeders" are the very fabric of the community, the entrepreneurs must be in the lead.

Brad Feld (2012)


Systemicconditions

2010

III. Stakeholders involved in the ecosystem

Diagnosis & Debate, Before (Policy) Prescription

• Diagnosis: ‘objective’ facts + debate

Formal institutions


Systemicconditions

Culture



Demand

New knowledge

Innovativestart-ups





Value creation

Outcomes

Outputs



Entrepreneurial Ecosystem Framework as a tool for Diagnosis & Debate

• A framework presents elements and relationships that provide a grammar for the debate. These debates tend to be productive in that they are fine grained—people can move past areas of agreement, focus on areas of disagreement, and analyze why they hold different beliefs. They either achieve a consensus or make a decision knowing precisely where and why they disagree. (Adner 2016)

• In the case of disagreement, the debate will highlight critical assumptions that stakeholders should be particularly mindful of as the Entrepreneurial Ecosystem further evolves

Diagnosis & Debate, Before (Policy) Prescription

• Diagnosis: ‘objective’ facts + debate

– What are the bottlenecks in the EE?

– Who can best tackle these bottlenecks?

• Stakeholders: Leaders & Feeders of the EE

Entrepreneurial EcosystemsEngaged Scholarship

• Conversation with stakeholders of research:

Between Scylla and Charybdis?

Ivory tower science <-> theory led by policy

Formal institutions


Systemicconditions

Culture



Demand

New knowledge

Innovativestart-ups





Value creation

Outcomes

Outputs



Entrepreneurial Ecosystem Approach

Entrepreneurial Ecosystem Approachthe other 3S

I. Synthesis of academic work on entrepreneurship & regional development

II. Systemic view on how regions evolve, and the key role of ambitious entrepreneurship

III. Stakeholders involved in the ecosystem

Entrepreneurial Ecosystemsand Regional Policy

Erik Stam

International Conference on University-Based Entrepreneurship and Regional Development (ICUBERD)Theory, Empirics and Practical Implementation

Pecs, Hungary, December 2, 2016

Entrepreneurial Ecosystems and Regional Policy_Stam Pecs conference University Based Entrepreneurship and Regional Development

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