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Regional Comparative Advantage and Knowledge Based Entrepreneurship



Nowak E.



This proposal addresses Topic 1 of Priority 7 of the Second Call. It aims at developing a comprehensive report on how societal, legal, and economic factors affect the patterns of regional economic growth and how Knowledge-Based Entrepreneurship (KBE) contributes to shifting patterns of regional comparative advantage and to regional growth and social cohesion.

Our research will assess the links between societal, legal, and economic mechanisms and KBE at micro level, while studying the resulting regional dynamics and growth patterns at macro level. We will use a cross disciplinary approach to study KBE as a complex, multi-dimensional process. While theoretically grounded, our analysis will be mainly empirical and will provide a detailed blueprint for the implementation of the Green paper on Entrepreneurship.

The project will have three main objectives:
(1) Analyse the societal, legal, and economic factors that determine the forms and intensity of KBE. We will identify factors that affect risk-taking and entrepreneurship and create a conductive environment to the circulation of ideas within and across firms, fostering creative destruction. We will document how societal values, social capital, legal factors (e.g., intellectual property rights and corporate governance codes) and the provision of finance (especially through venture capital) affect KBE across European regions.
(2) Analyse how KBE contributes to shifting patters of regional comparative advantage. We will assess the experiences of regions with different policies for the creation of human and social capital, for the elimination of barriers to entrepreneurship, for influencing the location decision of knowledge-based firms, and for technology transfers from established companies and universities to start-ups. We will look at the experience of one accession country and of India, Israel, and Brazil.
(3) Discuss the policy implications of our analysis. We will deliver detailed policy suggestions.

Additional information

Start date
End date
36 Months
Funding sources
European Commission
European and International Programmes / Framework Programme 6