Building of the knowledge-based entrepreneurial economy through collaboration between enterprises and start-ups

Abstract

Methods. In the course of study the following scientific methods were used: abstraction, which was employed to define the essence of the knowledge-based entrepreneurial economy; induction and deduction, which were used to identify the benefits, risks and challenges of collaboration between enterprises and start-ups; generalization and specification to distinguish between various approaches to facilitating growth of innovative start-ups. Results. The study has enabled one to contend that in order to ramp up a knowledge-based entrepreneurial economy, there has to be better cooperation between enterprises and start-ups. Collaborating can help both well-established enterprises and start-ups maintain their competitive advantage and expand into markets that would be challenging for them to enter on their own. However, there are also a lot of potential risks and difficulties with this collaboration. It was also defined that the three main industries served by Ukrainian IT businesses are business productivity software, media, and fintech. Novelty lies in identifying the saliant features of collaboration between enterprises and startups for facilitating growth of innovative start-ups and building knowledge-based entrepreneurial economy under modern circumstances. Practical value is enshrined in establishing benefits, risks, and challenges of collaboration between well-established corporates and start-ups as new market entrants. This may serve as a foundation for implementation of government policies aimed at ramping up economic growth through knowledge-based entrepreneurial economy.