Entrepreneurial city

Encouraging entrepreneurship in innovative output

Innovative technologies and smart solutions need seminal ideas and daring entrepreneurs who implement them. You will find an accumulation of innovative heads and entrepreneurs in so called Entrepreneurial Cities which are characterized by a high level of entrepreneurship and startup companies. Currently, in the economic development a shift from big companies towards small and startup companies is remarkable which makes space for inventive entrepreneurs and unconventional ideas. Since the high level of entrepreneurship and startup companies is related to economic growth, more locally orientated economic development is encouraged by local policy makers.

When the conventional top-down approach is marked by public venture funds and huge science parks, in bottom-up processes the entrepreneurs gain importance and replace the government in the role of center of innovation. Therefore, a main characteristic of entrepreneurship is independence. However, according to a policy brief of the Harvard Kennedy School entrepreneurship is not to be equated to self-employment since successful entrepreneurship mostly happens in smaller firms. Even if entrepreneurial firms are independent from governmental control, they do depend on educational institutions.

According to the policy brief higher education is an important factor for the development of entrepreneurship because universities and other educational institutions do not only train future entrepreneurs but also help them by supporting startup companies with the essential know-how.

Entrepreneurial culture

However, according to a study the recipe for success of Entrepreneurial Cities is not just the combination of an accumulation of universities, research institutions and a venture capital. What innovative entrepreneurs need for success is a place for unconventional or even outlandish ideas.

Entrepreneurial Culture is widely open to new ideas and strongly oriented towards facing and overcoming obstacles. Moreover, connecting with people as well as building and leading teams are crucial in the entrepreneurial culture and therefore characteristic for entrepreneurial cities. From this kind of innovation friendly entrepreneurial culture combined with the required knowledge and know-how an Entrepreneurial City can rise.