Entrepreneurial Ecosystem and Urban Economic Growth

Abstract

The purpose of this paper is to explain the link between the development of entrepreneurial ecosystems and economic growth at the urban level, and in specific scrutinizes the moderating roles of industrial diversities and digital technology service. This study investigates the economic growth of 32 cities in China from 2008 to 2018. The sample covers a wide range of cities in China. We apply OLS models with fixed effects and time controlled. The results show that entrepreneurial ecosystems’ development promotes municipal economic growth. Moreover, industrial diversity and digital technology service are found to positively moderate the relationship between entrepreneurial ecosystems’ development and the urban economic growth. This study significantly extends the literature on entrepreneurial ecosystems and regional economic development. From the perspective of knowledge-based view, this study provides a new lens to understand the function of the entrepreneurial ecosystems at the urban level. It also provides policymakers and stakeholders a different mentality when forming strategies and regulations on entrepreneurship.