In regions which have extensive amounts of entrepreneurship, including Silicon Valley, Boston, New York City, and Israel,[4] many of the ecosystem elements are strong and typically have evolved in tandem.
Similarly, the formation of these ecosystems suggests that governments or societal leaders who want to foster more entrepreneurship as part of economic policy must strengthen several such elements simultaneously.
The Babson College Entrepreneurship Ecosystem Project then categorizes this framework into these domains: policy, finance, culture, supports, human capital and markets.
Much additional scholarship has reinforced this conceptualization, and Liguori and colleagues developed a measure that has been widely used nationally to assess communities from Tampa to Philadelphia to Chicago, and more.
They emphasize that cultural elements, such as community engagement and shared values, play a crucial role in the growth and success of EEEs.
By incorporating both cultural and material perspectives, policymakers can better design incentives and regulations to foster economic growth and innovation in these ecosystems.
This approach suggests that building cultural infrastructure is as important as financial and technical support in developing thriving entrepreneurial environments.
[14] In addition, Glaeser, Kerr and Ponzetto followed up this research and confirmed the relationship between smaller average firm size and higher growth rates.