Local Competitiveness Fostered through Local Institutions for Entrepreneurship

Arbeitspapier

We review and assess the role local institutional framework conditions play in fostering local entrepreneurship. The basic premise is that entrepreneurship is a central driver of economic renewal and change, and that institutions affect both the supply and direction of entrepreneurship. While local institutions always develop and operate against the backdrop of national institutional frameworks, in particular in non-federal states, our review shows that there is plenty of room for local initiatives and policies to influence the entrepreneurial climate locally. This pertains to both formal (e.g., taxes, regulations and stringency of enforcement) and informal (e.g., attitudes and social legitimacy) institutions. We further argue that the local institutional environment is essential in any local policy aimed to foster productive (high-impact) entrepreneurship. Favorable local institutions not only increase the odds that a region develops or manage to attract entrepreneurial incumbents, but also the odds that a region reaps the full potential of hosting entrepreneurial and knowledge-intensive activities.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1020

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; State and Local Government; Intergovernmental Relations: General ; Entrepreneurship ; New Firms; Startups ; Institutions and Growth ; Production Analysis and Firm Location: Government Policy
• Subject: Business climate ; Entrepreneurship ; Institutions ; Job creation ; Local policies ; Startups ; Regulations ; Entrepreneurship culture

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andersson, Martin ; Henrekson, Magnus
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/109120
• Last update: 10.03.2025, 11:41 AM CET