Abstract
Entrepreneurs play an important role in the evolutionary process of regional industries. As founders of new firms, entrepreneurs increase the supply side of the industrial economy, and by doing so, they challenge the incumbent firms to respond. From the perspective of evolutionary economics, understanding these dynamics of entrepreneurial triggers and industrial firm responds are important, as it sheds new light to our understanding of how regional industries evolve.The entrepreneurship literature offers several classifications which are helpful in distinguishing between different types of entrepreneurs and firms. However, none of these classifications and typologies are suitable for explaining what effect new entrepreneurial firms may be expected to have on regional industries and their future development. This paper seeks to address this knowledge gap. Based on two dimensions, innovation novelty and entrepreneurial growth intention, the conceptual framework develops a typology of new entrepreneurial firms’ expected effect on future regional industrial development. In doing so, the paper contributes to the field of evolutionary economic geography by introducing a new perspective on entrepreneurial firms’ contribution to dynamic regional industrial path development.
Highlights
Evolutionary economics argue that economic development and growth take place as a result of an evolutionary process (Nelson, 2008; Nelson and Winter, 2009)
Characteristics of new firms supporting various industrial development paths So far, we have argued that entrepreneurs contribute to regional industrial development by introducing new firms, that industries consist of firms producing products that are close substitutes for one another and that industries tend to develop through certain pathways affected by history and their unique regional innovation system
Towards an entrepreneurial firm typology This paper has argued that both entrepreneurial growth intentions and innovation novelty are characteristics important for identifying the potential future industrial path contribution of new entrepreneurial firms
Summary
Evolutionary economics argue that economic development and growth take place as a result of an evolutionary process (Nelson, 2008; Nelson and Winter, 2009). An industry is defined as a group of firms producing products that are close substitutes for one another (Porter, 1980) and regional industries consist of actors seeking to advance their interests based on bounded rationality (Simon, 1982) and in interaction with others (Scharpf, 1997). The result of these individual firm decisions are visible in overall regional industrial development.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
