Inquiry Into Interaction Between Entrepreneurial Ecosystem And Economic Development

The Fourteenth Five-Year Plan has put forward “to optimize the ecosystem of innovation,entrepreneur,and invention”,and emphasized “to give full play to the important role of entrepreneurs in grasping the direction of innovation,gathering talents and raising funds”.Entrepreneurial Ecosystem is thought to be one of the reasons for the differences in economic development,a strategy of regional developing,and a new routine of understanding the mechanism of economics.However,though Entrepreneurial Ecosystem plays several important roles,several critical questions remain unclear.The one is the question of boundary,namely at what scale should Entrepreneurial Ecosystem be built.The other is the question of mechanism,namely how Entrepreneurial Ecosystem(and the elements within)interacts with each other.Thus,given these two fundamental questions unsettled,the routine of constructing Entrepreneurial Ecosystem is still being debated.Considering these critical and fundamental questions,this research aims at:(1)The question of possibility,namely is it possible and sustainable for emerging markets(such as China)to construct regional(province-level)entrepreneurial ecosystem?(2)The question of necessity,namely is it able to sustainably,creatively,and inclusively promote economic development by constructing regional entrepreneurial ecosystem in emerging markets?(3)The question of internal mechanism,namely how elements within entrepreneurial ecosystem interact with each other?(4)The question of external mechanism,namely how entrepreneurial ecosystems interact with each other?Considering the four mentioned above,three more concise research contents are drawn.The rationality behind are the complexity of Entrepreneurial Ecosystem,and the mainstream classification in the Entrepreneurial Ecosystem researches focusing on representative sub-ecosystems.Thus,different sub-ecosystems are built,different developing aims are chosen,and three research contents are set up:(1)The influence of entrepreneurial ecosystem on sustainable development,from the perspective of inclusive finance as system condition;(2)The influence of entrepreneurial ecosystem on creative development,from the perspective of framework conditions;(3)The influence of entrepreneurial ecosystem on inclusive development,from the interacting perspective of system condition(inclusive finance)and framework condition(transportation).Given the three main research contents,Entrepreneurial Ecosystem Theory and two-generation overlapping model are applied to qualitatively and quantitatively interpret the mechanism respectively;after that,panel vector auto-regression and spatial regression are applied upon Chinese provincial panel data to test the interactions within and between ecosystems.According to the researches above,it is found: Firstly,entrepreneurial ecosystem promotes economic development sustainably,creatively,and inclusively;this argument can be found both in the theoretical model and two-generation overlapping model,and is empirically proved with the panel vector regression and spatial regression.Secondly,several developing traps should be avoided,including(1)too-low human capital return,(2)too-low framework conditions level,(3)too-low human capital stock level,and(4)too-low technology endowment;thus,supporting policies should be provided,with short-term tolerance and long-term insistence.Thirdly,the inter-ecosystem interactions are spatially clustering,while heterogeneous between the urban and the rural;thus,coordination between regions’ policies should be paid great attention;on the one hand,financial risk generated from entrepreneurial failure should be watch out for;on the other hand,special help should be provided to those immovable labors(such as with permanent disability or disease).By digging into the above-mentioned three researches,this paper answers the critical fundamental questions relating to boundary and mechanism of Entrepreneurial Ecosystem.Thus,this paper contributes to the fields of entrepreneurial economics and entrepreneurship: Firstly,China provincial panel data is chosen as sample,which represents the generality of emerging markets,thus tests the applicability of the province-level entrepreneurial ecosystem in emerging markets.Secondly,the two-generation overlapping model not only interprets the mechanism between elements within the sub-ecosystem which is constructed in this paper,but also is able to be augmented to the other sub-ecosystem or even a more comprehensive ecosystem.Thirdly,the panel vector auto-regression model alleviates the endogenous problem,thus gives more solid proves to the entrepreneurial ecosystem questions,and can be used in further researches.Fourthly,the spatial regression model combines system conditions with framework conditions,and takes entrepreneurship and economics into consideration,gives insights to the inter-ecosystem analysis.