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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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