Entrepreneurial Ecosystems and Regional Persistence of High Growth Firms: A ‘Broken Clock’ Critique

Tipo: artículo
Idioma: Inglés

Título: Entrepreneurial Ecosystems and Regional Persistence of High Growth Firms: A ‘Broken Clock’ Critique

The Entrepreneurial Ecosystems (EE) approach makes specific predictions regarding how EE inputs are converted into high-growth firms (HGFs) as an output. A simulation model draws out our hypothesis of regional persistence in HGF shares. Based on intuitions that EEs are persistent, we investigate whether regional HGF shares are persistent, using census data for 2 European countries taken separately (Croatia for 2004-2019, and Slovenia for 2008-2014). Overall, there is no clear persistence in regional HGF shares – regions with large HGF shares in one period are not necessarily likely to have large HGF shares in the
following period. This is a puzzle for EE theory. In fact, there seems to be more persistence in industrylevel HGF shares than for regional HGF shares. We formulate a ‘broken clock’ critique – just as a broken  clock is correct twice a day, EE recommendations may sometimes be correct, but are fundamentally flawed  as long as time-changing outcomes (HGF shares) are predicted using time-invariant variables (such as local universities, institutions and infrastructure).

Autores: 

Alex Coad

Stjepan Srhoj

Publicación:

Coad, Alex; Srhoj, Stjepan (2021) : Entrepreneurial Ecosystems and
Regional Persistence of High Growth Firms: A ‘Broken Clock’ Critique, GLO Discussion Paper,
No. 996, Global Labor Organization (GLO), Essen

Año: 2021

Aportado por: José Carlos Sánchez García