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Entrepreneurial ecosystems in cities: The role of institutions

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  • David Bruce Audretsch
  • Maksim Belitski
  • Nataliia Cherkas

Abstract

Entrepreneurship activity varies significantly across cities. We use the novel data for 1,652 ecosystem actors across sixteen cities in nine developing and transition economies during 2018–2019 to examine the role that institutional context plays in facilitating the productive entrepreneurship and reducing the unproductive entrepreneurship. This study is the first to develop and test a model of multi-dimensional institutional arrangements in cities. It demonstrates that not just that institutions matter in shaping the entrepreneurship ecosystem in cities, but in particular those institutional arrangements enhancing the productive and reducing unproductive entrepreneurship. Our findings suggest that differences between normative, cognitive, and regulatory pillars are associated with variance in both types of entrepreneurship in cities. For the formation of productive and high-growth entrepreneurs, all three pillars of institutional arrangement matter. For unproductive entrepreneurship normative pillar of institutions and the role of civil society matter most. This study has theoretical and practical implications for entrepreneurship ecosystem policy in cities.

Suggested Citation

  • David Bruce Audretsch & Maksim Belitski & Nataliia Cherkas, 2021. "Entrepreneurial ecosystems in cities: The role of institutions," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-22, March.
    • Handle: RePEc:plo:pone00:0247609
    DOI: 10.1371/journal.pone.0247609
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    References listed on IDEAS

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    1. David B. Audretsch & Maksim Belitski, 2017. "Entrepreneurial ecosystems in cities: establishing the framework conditions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1030-1051, October.
    2. Fritsch, Michael & Sorgner, Alina & Wyrwich, Michael, 2019. "Self-employment and well-being across institutional contexts," Journal of Business Venturing, Elsevier, vol. 34(6).
    3. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    4. Ruta Aidis & Saul Estrin & Tomasz Mickiewicz, 2012. "Size matters: entrepreneurial entry and government," Small Business Economics, Springer, vol. 39(1), pages 119-139, July.
    5. Elinor Ostrom, 2008. "Doing Institutional Analysis: Digging Deeper than Markets and Hierarchies," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 30, pages 819-848, Springer.
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    Cited by:

    1. Mora, Luca & Gerli, Paolo & Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2023. "Smart city governance from an innovation management perspective: Theoretical framing, review of current practices, and future research agenda," Technovation, Elsevier, vol. 123(C).
    2. David B. Audretsch & Antje Fiedler, 2023. "Power and entrepreneurship," Small Business Economics, Springer, vol. 60(4), pages 1573-1592, April.
    3. Simba, Amon & Wang, Yan & del Olmo García, Francisco, 2023. "Deconstructing self-organisation in microentrepreneurship: A social embeddedness perspective," Journal of Business Research, Elsevier, vol. 162(C).
    4. Alex Maritz & Quan Nguyen & Hsin-Ming Hsieh, 2021. "Exploring the Strategic Intent and Practices of University Accelerators: A Case of Australia," Sustainability, MDPI, vol. 13(19), pages 1-11, September.
    5. Saurabh A. Lall & Li-Wei Chen & Dyana P. Mason, 2023. "Digital platforms and entrepreneurial support: a field experiment in online mentoring," Small Business Economics, Springer, vol. 61(2), pages 631-654, August.
    6. Sohail, Kanza & Belitski, Maksim & Castro Christiansen, Liza, 2023. "Developing business incubation process frameworks: A systematic literature review," Journal of Business Research, Elsevier, vol. 162(C).
    7. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    8. Cobben, Dieudonnee & Ooms, Ward & Roijakkers, Nadine & Radziwon, Agnieszka, 2022. "Ecosystem types: A systematic review on boundaries and goals," Journal of Business Research, Elsevier, vol. 142(C), pages 138-164.
    9. FUKUGAWA Nobuya, 2023. "Determinants of Commercialization Modes of Science: Evidence from panel data of university technology transfer in Japan," Discussion papers 23053, Research Institute of Economy, Trade and Industry (RIETI).
    10. Sam Tavassoli & Viroj Jienwatcharamongkhol & Pia Arenius, 2023. "Colocation of Entrepreneurs and New Firm Survival: Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1421-1459, July.
    11. Medase, S. Kehinde & Ahali, Aaron Yaw & Belitski, Maksim, 2023. "Natural resources, quality of institutions and entrepreneurship activity," Resources Policy, Elsevier, vol. 83(C).
    12. Colleen Casey & Timothy Bates & Joseph Farhat, 2023. "Linkages between regional characteristics and small businesses viability," Small Business Economics, Springer, vol. 61(2), pages 617-629, August.
    13. Iuliia Iliashenko & Fragkoulis Papagiannis & Patrizia Gazzola & Nataliia Cherkas & Daniele Grechi, 2023. "Entrepreneurial Behaviour and Organisational Propensity to Innovate in a Public-Sector Context," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 111-156, March.
    14. Arnauld Bessagnet & Joan Crespo & Jerome Vicente, 2023. "How is the literature on Digital Entrepreneurial Ecosystems structured? A socio-semantic network approach," Papers in Evolutionary Economic Geography (PEEG) 2320, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2023.
    15. Cheng, Ruiqi & Yuan, Peng & Jiang, Gongxiong, 2023. "Growth, agglomeration externalities, and survival: Evidence from Chinese manufacturing start-ups," Journal of Business Research, Elsevier, vol. 154(C).
    16. Michael Fritsch & Martin Obschonka & Fabian Wahl & Michael Wyrwich, 2021. "Cultural Imprinting: Ancient Origins of Entrepreneurship and Innovation in Germany," Jena Economics Research Papers 2021-012, Friedrich-Schiller-University Jena.
    17. Minniti, Maria & Naudé, Wim & Stam, Erik, 2023. "Is Productive Entrepreneurship Getting Scarcer? A Reflection on the Contemporary Relevance of Baumol's Typology," IZA Discussion Papers 16408, Institute of Labor Economics (IZA).
    18. Daniel Prokop & Piers Thompson, 2023. "Defining networks in entrepreneurial ecosystems: the openness of ecosystems," Small Business Economics, Springer, vol. 61(2), pages 517-538, August.
    19. Nabil Al-Qadasi & Gongyi Zhang & Ibrahim Al-Jubari, 2021. "Attitude of youth towards self-employment: Evidence from university students in Yemen," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    20. Ganira Ibrahimova & Petra Moog, 2023. "Colonialism versus independence—the role of entrepreneurial ecosystems in Azerbaijan over time," Small Business Economics, Springer, vol. 61(3), pages 1289-1336, October.
    21. Woraphon Yamaka & Paravee Maneejuk & Rungrapee Phadkantha & Wiranya Puntoon & Payap Tarkhamtham & Tatcha Sudtasan, 2023. "Survival and Duration Analysis of MSMEs in Chiang Mai, Thailand: Evidence from the Post-COVID-19 Recovery," Mathematics, MDPI, vol. 11(4), pages 1-21, February.
    22. David B. Audretsch & Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2022. "Necessity or opportunity? Government size, tax policy, corruption, and implications for entrepreneurship," Small Business Economics, Springer, vol. 58(4), pages 2025-2042, April.

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