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Entrepreneurial Ecosystem in the European Union Regions: Identification of Optimal Ecosystem Configurations for Informed Policy

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The Entrepreneurial Ecosystem

Part of the book series: Palgrave Studies in Entrepreneurship and Society ((PSEI))

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Abstract

Szerb and Komlósi offer a direct analysis of regional ecosystems based on the Regional Entrepreneurship and Development Index (REDI). The authors acknowledge that the REDI approach is based on homogeneous (across regions) and fixed (across pillars) pillar weights, thus ignoring part of regions’ heterogeneity. Therefore, they enhance the REDI methodology by using the benefit of the doubts (BOD) weighting technique. The BOD method reflects a value judgment on the optimal configurations of REDI constituents. The discussion pays close attention to the connection between meaningful composite indicators and policy-making. If policy makers are given objective, nonarbitrary information about the importance of REDI pillars, resource allocation should follow an economically meaningful process. Quantity improvements are ensured if additional resources are deployed, but for an equal quantitative change in the REDI score, enhancements will be qualitatively superior if policy makers target a clear set of priorities. Based on the BOD enhanced REDI, the authors provide a score on the quality of the entrepreneurial ecosystem for 125 European Union (EU) regions, and conclude with an analysis of specific entrepreneurship policies for 23 large EU regions.

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Notes

  1. 1.

    For more variations in the definition, see Cavallo et al. (2019) or Chao and Shi (2020).

  2. 2.

    See https://reap.mit.edu/

  3. 3.

    See https://www.babson.edu/about/news-events/babson-announcements/babson-college-entrepreneurship-ecosystem-project-established/

  4. 4.

    The attitude subindex aims to identify the attitude of the people toward entrepreneurship (like the level of opportunity recognition or start-up skills within the population). Abilities are principally concerned with measuring certain important characteristics of both entrepreneurs and start-ups with high growth potential (e.g. the extent to which new opportunities motivate business start-ups, the share of technology intensive and creative sectors in the region). The entrepreneurial aspiration subindex refers to the distinctive, qualitative, strategy-related nature of entrepreneurial start-up activity (i.e., the degree of innovativeness and the extent to which high growth, internationalization, and good access to finance characterize entrepreneurial businesses).

  5. 5.

    In fact, it is a six-group version because Nisia Aigaiou, Kriti region, was one group that we replaced to the 5th cluster manually.

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Author information

Authors and Affiliations

  1. Faculty of Business and Economics, University of Pécs, Pécs, Hungary

    László Szerb & Éva Komlósi

Authors
  1. László Szerb
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  2. Éva Komlósi
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Correspondence to László Szerb .

Editor information

Editors and Affiliations

  1. George Mason University, Arlington, VA, USA

    Zoltan J. Acs

  2. Business School, Costa Rica Institute of Technology (ITCR), Cartago, Costa Rica

    Esteban Lafuente

  3. Faculty of Business and Economics University of Pécs, Pécs, Hungary

    László Szerb

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Szerb, L., Komlósi, É. (2023). Entrepreneurial Ecosystem in the European Union Regions: Identification of Optimal Ecosystem Configurations for Informed Policy. In: Acs, Z.J., Lafuente, E., Szerb, L. (eds) The Entrepreneurial Ecosystem. Palgrave Studies in Entrepreneurship and Society. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-25931-9_6

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