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Can Innovation Enhance Entrepreneurial Activities of a Region? An Analysis Utilizing the Entrepreneurial Remedy Model (EREM)

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  • Adli Abouzeedan

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  • Boo Edgar
  • Thomas Hedner
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    Abstract

    In contrast to the Entrepreneurial Recycling Model (EREC), the Entrepreneurial Remedy Model (EREM) demands an active role of innovation to create an environment where small and medium size companies (SMEs) are developed. The EREM may provide a conceptual platform which may explain why developed regions have succeeded in maintaining a healthy entrepreneurial environment, while the less developed have failed to do that. Further, the Open Innovation concept is brought into the discussion connecting innovation to entrepreneurial environment conditions. A question which remains to be solves has to do to with the impact of innovation on the extent of entrepreneurial activities at a regional level. In this paper we will analyze and discuss this issue and provide understanding of the impact of innovation using the EREM. As such, the EREM offers an analytical tool to examine how the macroeconomic conditions impact the creation of new firms within a region or a country. Keywords: Open innovation, Entrepreneurial Remedy Model, EREM, regional development, incubators, start-ups, Small and medium-sized enterprises, SMEs

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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1277.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p1277

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