The Influence of Local Economic Conditions on Start-Ups and Local Open Innovation System

Izabela Jonek-Kowalska,Radosław Wolniak

doi:10.3390/joitmc7020110

Abstract

The development of start-ups is a driving force of the local and regional economy. Therefore, it should be in the interest of municipal authorities to take actions for their organizational and resource support. In the conditions of limited public resources, however, it is a difficult and multifaceted task. Therefore, in this article, the authors attempt to determine the influence of local conditions on the establishment of start-ups. As a natural environment for the development of this type of entrepreneurship, cities were considered in which accessibility to infrastructure and human resources is high, and thus, by definition, conducive to creativity and innovation. Such a formulations of the objective and scope of the research allowed the existing theoretical and research gaps to be filled, relating to the identification and establishment of a hierarchy of local determinants of creating start-ups in the urban environment. The research in question was carried out on a representative sample of 287 Polish cities using questionnaire techniques and structural modelling. The results confirm the dominant influence of human and financial capital on the establishment of start-ups. The research also shows a slightly less significant influence of business incubators and technology parks on the creation of start-ups, which implies the need to improve the performance of these entities. The results also point to the positive role of direct city involvement in the development of this form of entrepreneurship.

Highlights

Start-ups are the strongest manifestation of entrepreneurship and innovation [1]
Data presented in both tables show that, among conditions for establishing start-ups, the respondents assessed the availability of venture capital funds as the worst
In the context of previous research conducted on start-ups, the obtained results indicate a low level of development of this type of entrepreneurship in Poland as an emerging economy, which may and in the future hinder the growth of innovativeness because, as emphasized in the introduction, it is an important determining factor of urban and national economic development [14,15,16,17]

Summary

Introduction

Start-ups are the strongest manifestation of entrepreneurship and innovation [1] They are distinguished from other business ventures by dynamic market expansion executed most often using modern technologies, such as information and communication [2,3,4,5]. From an economic point of view, start-ups are very valuable sources of innovation and civilizational, as well as social development. Their creation and development mean that a classic growth of local entrepreneurship exists, as well as contributing to broader promotion and increase in recognition of the region. Previous research suggests that the initiation and development of start-ups—in addition to strengthening entrepreneurship—contributes to increased resilience to external threats, including those related to pandemics [9]

Objectives

Methods

Results

Discussion

Conclusion