Public policy’s role and capability in fostering the emergence and evolution of entrepreneurial ecosystems: A case of ecosystem-based policy in Finland

Abstract

This paper explores public policy’s role and capability in fostering the emergence and evolution of entrepreneurial ecosystems. While the entrepreneurial ecosystem approach has focused on the ingredients and essentials of entrepreneurial ecosystems, the policy-focused dimensions are lacking, and especially insights derived through the “real world” policy efforts to develop entrepreneurial ecosystems. This paper contributes to the discussion by focusing on various actors’ roles in supporting entrepreneurship and facilitating interaction and collaboration within entrepreneurial ecosystems by taking a participatory action research approach to study the case of ecosystem-based policy in Finland. Findings illustrate that public policy may incubate and facilitate entrepreneurial ecosystems through regionally embedded actors. Through well-designed, sustainable and leadership-based innovation services, entrepreneurs are linked to co-creation processes, data, infrastructure and competencies to support new ventures whilst benefitting also the regional ecosystem. However, the challenge lies in embedding the processes in other regional contexts in which the organisations and institutional settings may be different.