The Role of New Venture Formation/Entrepreneurship in Regional Economic Development: A Review

Abstract

This review essay examines the same phenomena as viewed from two different schools of thought. The two approaches, characterized as the Regional Economics and Entrepreneurship schools, embody distinct fields of research, but have not engaged in intercourse that allows one approach to build upon the other. A first step in overcoming this mutual ignorance is undertaken in this analysis. The conceptual perspectives of the two schools are explored. Discussion proceeds to how empirical analysis is conducted in the two schools. Distinctions are made about units of analysis, research assumptions, research hypotheses, and research designs. An example of a research methodology that could be used by the two schools to examine the same issue is offered. Finally, suggestions are made for synthesizing these two divergent approaches.