Systemic interventions in regional innovation systems: entrepreneurship, knowledge accumulation and regional innovation

ABSTRACTThe paper employs a regional innovation system concept and divides system failures into three categories: institutional infrastructure, organizational landscape and structural connectedness. To analyze the economic effects of systemic interventions, it employs the VISIBLE model, which allows ex-ante policy experiments to be conducted in a virtual simulation environment. First, the findings show that regional learning and knowledge exchange are accompanied by pronounced non-linearities and combined learning strategies generate highest regional returns. Second, systemic interventions, originally designed to stimulate qualitatively different types of entrepreneurial entries, show – against the backdrop of different regional learning regimes – rather ambiguous effects for both the target firms and the incumbent firms. Finally, it can be seen that interventions designed to affect individual linking behaviour of entrepreneurial firms are effective and robust even for different learning regimes.