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Entrepreneurial Experimentation: A Key Function in Entrepreneurial Systems of Innovation

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  • Lindholm-Dahlstrand, Åsa

    () (CIRCLE)

  • Andersson, Martin

    () (Department of Industrial Economics)

  • Carlsson, Bo

    () (Department of Economics)

Abstract

There is a need for a conceptual approach that, with reference to explicit micro-level mechanisms and processes of industrial dynamics, articulates the role and function of entrepreneurial experimentation in innovation systems. This paper develops the concept of ‘entrepreneurial systems of innovation’ to address this gap in the literature. We argue that entrepreneurial experimentation comprises both ‘technical’ and ‘market’ experimentation, and that entrepreneurship must be conceptualized in terms of its function in innovation systems rather than as an outcome. At the systems level, the central function of entrepreneurial experimentation is to foster creation, selection and scaling-up of innovations. Spinoffs and acquisitions are proposed as examples of micro-mechanisms that give rise to system-wide entrepreneurial experimentation. Interaction between established organizations and new innovative entrants, through spinoffs and acquisitions, is an important characteristic of vibrant entrepreneurial systems of innovation.

Suggested Citation

  • Lindholm-Dahlstrand, Åsa & Andersson, Martin & Carlsson, Bo, 2017. "Entrepreneurial Experimentation: A Key Function in Entrepreneurial Systems of Innovation," Working Paper Series 1154, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1154
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    References listed on IDEAS

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    Cited by:

    1. Grillitsch, Markus, 2018. "Place-based entrepreneurship and innovation policy for industrial diversification," Papers in Innovation Studies 2018/3, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    2. Grillitsch, Markus, 2017. "Transformation Capacity of the Innovative Entrepreneur: On the interplay between social structure and agency," Papers in Innovation Studies 2017/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

    More about this item

    Keywords

    Entrepreneurship; Experimentation; Innovation systems; New technology-based firms; Entrepreneurial systems of innovation; Scaling up; Growth;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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