Technological Entrepreneurship Potential as a Diversification Factor of the Territory’s Economy

Abstract

The goal of the research consists in determining the potential of the technological entrepreneurship impact on the diversification processes of regional economy (regions and large municipal entities). The paper specifies the main types and diversification factors of regional economy. The authors determine the key limitations of modern diversification theories. The researchers propose the hypothesis of a “technological push” as a way of overcoming the effect of dependence on the previous economic development. The technological entrepreneurship gives the opportunity of creating principally new types of economic activity for a region which use the temporary monopoly effect. This fact determines the advantages of technological entrepreneurship when involving investors into the weak types of economic activity. The paper substantiates the main provisions displaying the impact of technological entrepreneurship on the dynamics of the regional economy’s structure. The authors classify the characteristics of technological entrepreneurship influencing the diversification of economy. The matrix of the correlation between the types of technological entrepreneurship and types of economic diversification is developed, on the basis of which the main directions and limitations of diversification are determined. The researchers suggest and classify the factors of the direct impact (creation of new industries and enterprises) and indirect positive effects of technological entrepreneurship in the context of creating a balanced structure of economy (development of human and social capital, growth of spatial importance of the territory). Technological entrepreneurship is a factor of the economic transformation and even under the conditions of the inertia development it allows minimizing the investment and market barriers of diversification when resources are limited. The results of the study can be used as a basis for further empirical research of the correlation of technological entrepreneurship and economic structure and also at substantiating the decisions of executive authorities, developing documents of strategic planning.