RICAFE 2 mission

The project’s key objective is to address the questions of how the European models of societal, legal, and economic institutions affect the patterns of regional economic growth and how Knowledge Based Entrepreneurship (KBE) contributes to shifting patterns of regional comparative advantage and shape policy options and priorities.

Our research will contribute to this goal by providing two sets of results:

  1. We will provide an in-depth conceptual and empirical assessment of the societal, legal, and economic forces affecting KBE in Europe in order to develop and advance understanding of the nature of KBE as a complex, multi-faceted process; and

  2. We will provide new evidence on how KBE contributes to shifts in regional comparative advantage, and build a coherent conceptual framework for understanding observed patterns of regional growth.

Research programme

Our research will assess the links between societal, legal, and economic mechanisms and KBE at micro level, while studying the resulting regional dynamics and growth patterns at macro level. We will employ a cross disciplinary approach to study KBE as a complex, multi-dimensional process.

While theoretically grounded, our proposed analysis is also empirical and will provide a detailed blueprint for the implementation of the Green paper on Entrepreneurship. The project has three main objectives:

  1. Analyse the societal, legal, and economic factors that determine the forms and intensity of KBE. We will identify factors that affect risk-taking and entrepreneurship and create a conducive environment to the circulation of ideas within and across firms, fostering creative destruction. We will document how societal values, social capital, legal factors (e.g., intellectual property rights and corporate governance codes) and the provision of finance (especially through venture capital) affect KBE across European regions.

  2. Analyse how KBE contributes to shifting patters of regional comparative advantage. We will assess the experiences of regions with different policies for the creation of human and social capital, for the elimination of barriers to entrepreneurship, for influencing the location decision of knowledge-based firms, and for technology transfers from established companies and universities to start-ups. We will look at the experiences of one accession country and of India, Israel, and Brazil.

  3. Discuss the policy implications of our analysis. We will deliver detailed policy suggestions.