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Measuring the Effects of Policies Targeting Entrepreneurial Ecosystems: An Application of the GMR Framework with REDI

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The Entrepreneurial Ecosystem

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

Abstract

Varga, Sebestyén, Szabó and Szerb estimate the economic impact of entrepreneurship policy. Entrepreneurship policy should be added to the palette of public interventions promoting economic growth. Despite the growing evidence, the authors discuss the difficulties in measuring how a given policy intervention would affect economic growth in a particular country or region and how these effects change over time. The authors propose that these policy effects can be estimated with economic impact models, and introduce the most recent version of GMR-Europe to determine the economic repercussion of entrepreneurship-specific policy interventions. To illustrate the capacity of the model, the authors provide a detailed policy impact assessment analysis.

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Notes

  1. 1.

    The attitude sub-index aims to identify the attitude of the people towards 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 startups, the share of technology intensive and creative sectors in the region). The entrepreneurial aspiration sub-index 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).

  2. 2.

    These models either follow the tradition of macroeconometric modeling (like the HERMIN model—ESRI, 2002), the tradition of macro CGE modeling (like the ECOMOD model, Bayar, 2007) or the most recently developed DSGE approach (QUEST III—Ratto et al., 2009).

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Author information

Authors and Affiliations

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

    Attila Varga, Tamás Sebestyén, Norbert Szabó & László Szerb

Authors
  1. Attila Varga
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  2. Tamás Sebestyén
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  3. Norbert Szabó
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  4. László Szerb
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Corresponding author

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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Varga, A., Sebestyén, T., Szabó, N., Szerb, L. (2023). Measuring the Effects of Policies Targeting Entrepreneurial Ecosystems: An Application of the GMR Framework with REDI. 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_7

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