Entrepreneurship, Growth, and Regional Growth Regimes
We distinguish four types of regional growth regimes based on the relationship between new business formation and economic development. The distinguishing characteristics of these regime types are analyzed in order to identify the reasons for different growth performance. Although growth regimes are highly persistent over time, typical transition patterns between regime types can be identified. We explain these patterns and draw conclusions for policy. The evidence clearly suggests that entrepreneurship is a key driver of economic development and one that has long-run effects on regional economic well-being.
KeywordsEntrepreneurship New business formation Economic development Regional growth regimes
JEL ClassificationL26 R11 O11
The research was partially supported by the German Science Foundation (DFG RTG 1411).
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