The Divergence of Entrepreneurial Landscapes in the European Union

Abstract

Understanding the importance of innovation and entrepreneurship to economic growth and stability, the European Union has implemented policies and programs to create a more uniform context for cross-border business activities within the EU. While initial efforts led to a more unified European region, they did not lead to a more uniform one. Over the past five years, dramatic changes in Europe resulting from the financial crisis, the Eurosceptic movement, and the Syrian refuge crisis have incented nations to create their own national innovation and entrepreneurship efforts. This chapter explores the results of those diverging national programs on entrepreneurial outcomes. Specifically, the research explores national landscapes created as a result of differing endowments, regulatory regimes, tax systems, and venture funding levels. Results indicate that differences in these factors create significantly different entrepreneurial outcomes as measured by patent applications and new business registrations.