TY - JOUR
T1 - Effective policy mixes in entrepreneurial ecosystems
T2 - A configurational analysis in China
AU - Wang, Hongqi
AU - Zhao, Tianyi
AU - Cooper, Sarah
AU - Wang, Shanshan
AU - Harrison, Richard
AU - Yang, Zhongji
N1 - Funding Information:
Besides the two shared cores, Comprehensive Configuration represents the most straightforward and all-round policy approach. Despite great efforts and high costs, this has proved to be effective in promoting early-stage entrepreneurial performance in NHZs. Input Configuration has a simpler pattern than Comprehensive Configuration, but the commonality is that FUNDI also plays a core condition besides the shared two cores, and is also supplemented by the peripheral EDUCA. This indicates that the interaction between the two could produce another complementary mechanism. FUNDI-related measures, such as start-up subsidies, grants, and innovation funds, help alleviate the financial constraints of start-ups, and stimulate more R&D activities by compensating for the inherent risks and externalities of innovation (Takalo, ). In conjunction, with the support of EDUCA, financial management courses and financial literacy lectures delivered in NHZs help improve the capital utilization efficiency of start-ups. Also, training programs in professional skills and business enable them to no longer spend as much on hiring highly skilled employees and reduce outsourcing of technical and business modules (de Oliveira et al., ). Overall, the complementary mechanism of FUNDI and EDUCA can soften capital constraints while deepening human capital, jointly addressing the knowledge, skills, and financial gaps typical in the initial stage of entrepreneurial growth in NHZs.
Publisher Copyright:
© 2022, The Author(s).
PY - 2022/8/15
Y1 - 2022/8/15
N2 - Policy-makers are seeking to build vibrant entrepreneurial ecosystems (EEs) to promote innovative entrepreneurship. However, the role of government policy in EEs, especially in the emerging economy context, is poorly understood, lacking a systematic concept of policy and theoretical framework, clear policy classification, and empirical research considering distinctive characteristics of policy mixes in EEs. This paper introduces the concept of EE policy mixes and classifies them into seven policy instruments. Using data from 21 national high-tech zones (NHZs) in China, fuzzy-set qualitative comparative analysis (fsQCA) is applied to identify effective configurations of EE policy mixes that support early-stage and late-stage technology start-ups to produce high entrepreneurial performance. The configurational analysis shows that EE policy mixes present causal complexity and stage differences. Based on interpreting multiple policy interactions, we reveal the differentiated support mechanisms of EE policy mixes in NHZs and draw out their implications for research, policy, and practice. This study contributes to the EE literature by adopting a policy-mix perspective to examine the role of policy, exploring the specific emerging economy context of China, suggesting further extensions of the research to other contexts, and applying a methodology that reveals causal mechanisms. It also supports better-informed EE policy and governance.
AB - Policy-makers are seeking to build vibrant entrepreneurial ecosystems (EEs) to promote innovative entrepreneurship. However, the role of government policy in EEs, especially in the emerging economy context, is poorly understood, lacking a systematic concept of policy and theoretical framework, clear policy classification, and empirical research considering distinctive characteristics of policy mixes in EEs. This paper introduces the concept of EE policy mixes and classifies them into seven policy instruments. Using data from 21 national high-tech zones (NHZs) in China, fuzzy-set qualitative comparative analysis (fsQCA) is applied to identify effective configurations of EE policy mixes that support early-stage and late-stage technology start-ups to produce high entrepreneurial performance. The configurational analysis shows that EE policy mixes present causal complexity and stage differences. Based on interpreting multiple policy interactions, we reveal the differentiated support mechanisms of EE policy mixes in NHZs and draw out their implications for research, policy, and practice. This study contributes to the EE literature by adopting a policy-mix perspective to examine the role of policy, exploring the specific emerging economy context of China, suggesting further extensions of the research to other contexts, and applying a methodology that reveals causal mechanisms. It also supports better-informed EE policy and governance.
KW - Entrepreneurial ecosystem
KW - Government policy
KW - Policy mixes
KW - Emerging economies
KW - China
KW - Fuzzy-set qualitative comparative analysis (fsQCA)
UR - https://www.springer.com/journal/11187
U2 - 10.1007/s11187-022-00658-x
DO - 10.1007/s11187-022-00658-x
M3 - Article
SN - 0921-898X
JO - Small Business Economics
JF - Small Business Economics
ER -