Entrepreneurship As Regional Development Catalyst
Entrepreneurship is more and more considered a key driver of economic performance. Recent works in the literature on this research area (see Saxenian, 1994; Audretsch and Keilbach, 2004; Cooke, 2004; Cassia, Fattore and Paleari, 2006) suggest that there is a positive link between entrepreneurship capital, regional economic performance and the creation of new firms and businesses. This kind of intangible assets promotes the spillover of knowledge, becoming crucial in building firms and regional innovation capability and strengthening learning capacities. Entrepreneurship is, thus, about change and innovation. In relation to these concepts, the aim of the paper is to highlight the entrepreneurial dimension behind the creation of firms formed around new business ideas in a knowledge-based economy, where value-relevant assets are expected to consist predominately of intangible and non-marketable assets. To this purpose, we focus on companies going public on the Alternative Investment Market (AIM), a market dedicated to young and growing companies in both science and non-science based industries. The AIM was launched in 1995, allowing to a large number of SME to go public in the UK, and, today, is recognized as the most successful secondary market in Europe, brought forward as an example by other stock exchanges in mainland Europe. In the paper we investigate the post-IPO performance of listed firms, during the period going from 1995 to 2002, with the aim, first, to highlight the determinants shaping that performance and influencing the local milieu and, secondly, to underline the role of entrepreneurship. The results of this work have some policy implications both at national and regional level. At the national level, policy makers should take into account the relevance of an efficient financial system, in particular the emerging role of secondary markets, and try to remove financial constraints that hamper the the prospect of new businesses. At the regional level, political intervention should aim to promote entrepreneurial activities, which ease the regional process of change, for example, by encouraging the propensity to risk and facilitating the access to external capital.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven Fazzari & R. Glenn Hubbard & Bruce C. Petersen, 1987.
"Financing Constraints and Corporate Investment,"
NBER Working Papers
2387, National Bureau of Economic Research, Inc.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
- Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 651-666.
- Winker, Peter, 1996. "Causes and effects of financing constraints at the firm level: Some microeconometric evidence," Discussion Papers, Series II 292, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Almus, Matthias & Nerlinger, Eric A, 1999. "Growth of New Technology-Based Firms: Which Factors Matter?," Small Business Economics, Springer, vol. 13(2), pages 141-54, September.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
- Fikret Adaman & Pat Devine, 2002. "A Reconsideration of the Theory of Entrepreneurship: A participatory approach," Review of Political Economy, Taylor & Francis Journals, vol. 14(3), pages 329-355.
- David B. Audretsch & Erik E. Lehmann, 2004. "The Effects of Experience, Ownership, and Knowledge on IPO Survival: Empirical Evidence from Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-20, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p627. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.