Modelling the antecedents of innovation-based growth intentions in entrepreneurial ventures: the role of perceived regulatory conditions in the German renewable energies and disease management industries

Abstract

This paper develops a model of regulatory and policy support effects on innovation-based growth intentions of entrepreneurs. Our empirical study consists of multiple embedded case studies from the German renewable energies and medical disease management industries, including 6 firm cases, 20 expert interviews and a survey of 47 entrepreneurs and managers. The results suggest regulatory complexity and reliability as well as the degree of policy supportiveness as the central influence constructs on the perceived feasibility and desirability of growth aspirations. For innovation and entrepreneurship policy, this implies (1) that regulatory frameworks and incentives should feature long-term continuity so as to reduce product development and investment risks, (2) that this may be flanked by demand- and supply-side instruments to address market anomalies and (3) that the implementation of regulatory and policy measures should be kept transparent and accessible to reduce perceived administrative complexity.