European Union’s Horizon 2020 research and innovation programme (the “FIRES” project)(649378)
This study analyzes how the entrepreneurial ecosystem and different types of entrepreneurship
impact regional performance. By analyzing 121 European Union regions between 2012
and 2014, it is found that quantity (Kirznerian) entrepreneurship negatively impacts
regional performance, while this effect turns positive in the case of quality (Schumpeterian)
entrepreneurship. Also, regions with a healthy entrepreneurial ecosystem have a greater
capacity to materialize the effects of high business-formation rates, regardless of
their quality (Kirznerian entrepreneurship), while regions with weak entrepreneurial
ecosystem may rely on innovative (Schumpeterian) entrepreneurs to compensate for the
absence of entrepreneurship support policies and increase their economic outcomes.
