Role of Location-Based Ecofactors in Fostering the Entrepreneurial Ecosystem at the Microgeographical Scale: Evidence from Beijing

Abstract

The role of tacit knowledge exchange and spillovers at microgeographical levels is pivotal in determining the performance of entrepreneurial ecosystems. This paper examined the entrepreneurial ecosystem concept at the neighborhood level, shedding light on the intricate relationship between ecosystem factors and entrepreneurial outcomes. Using comprehensive data on a 1-km-resolution grid for Beijing spanning 2011–2015, we investigated how specific entrepreneurial ecosystem factors (ecofactors) influence the inception of startups. Our findings suggest that local ecofactors, such as financial institutions and government bureaus, correlate with heightened startup activities, yet this relationship exhibits considerable variability depending on firm type. Contrary to common belief within the entrepreneurial ecosystem literature, universities and research institutions do not significantly drive the birth of startups at such a scale. However, they play a crucial role in determining the location preferences for collective innovation spaces. This research underscores the importance for urban planners and policymakers to consider location-specific amenities when fostering and nurturing urban entrepreneurial ecosystems.