Tilting at the Windmills of Transition: An Empirical Analysis of Spatial Systems of Entrepreneurship and Institutions in Russia

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This book investigates spatial institutional variation and its influence on entrepreneurial activity in the Russian Federation, building on an innovative geometric clustering approach. 

The book looks into how entrepreneurial entry can be explained by institutional factors at the regional level. Furthermore, it examines the relevance of understanding entrepreneurial ecosystems as systems of interrelated elements whose overall function may be impeded by individual components. Most importantly, substantial evidence is presented that higher levels of regional democratization and the liberties that come with them are essential prerequisites for higher rates of entrepreneurial entry and innovation in Russia. The author draws on a comprehensive panel dataset and an unconventional prediction model approach to account for the interrelatedness of institutions with regard to their effects on entrepreneurship.
 
The heterogeneous transition context of the Russian Federation, which continues to have one of the lowest shares of innovative founders, provides an ideal setting for investigating the tedious efforts to tilt at the windmills of transition. Accordingly, the book is a must-read for researchers, scholars, practitioners and policymakers seeking a better understanding of spatial economics, entrepreneurship, economic development, transition economics, public administration and political studies. 

Author(s): Michael Schlattau
Series: Societies and Political Orders in Transition
Publisher: Springer
Year: 2020

Language: English
Pages: 308
City: Cham

Acknowledgments
About the Book
Contents
Abbreviations
List of Figures
List of Tables
Chapter 1: Introduction
References
Chapter 2: Entrepreneurship and Entrepreneurial Ecosystem
2.1 Entrepreneurship
2.1.1 Understanding the Entrepreneur
2.1.2 Entrepreneurship and Growth
2.1.3 Types of Entrepreneurship
2.2 Systems of Entrepreneurship
2.2.1 Entrepreneurship and the Role of the Individual
2.2.2 Entrepreneurship and the Relevance of Context
2.2.2.1 Why Context Matters
2.2.2.2 Institutions and Context
2.2.2.3 The Importance of the Regional Dimension
2.2.3 Bottleneck Factors as Limiting Constraints
References
Chapter 3: The Distinctive Layout of Russia
3.1 Regional Layout and Spatial Heterogeneity
3.2 Political Administration and Heterogeneous Institutions
3.3 Economy and Business Climate: Between Transition and Rent Dependency
3.4 Is Russia an Entrepreneurial Society?
References
Chapter 4: The Institutional Framework for Entrepreneurship in Transition
4.1 Structural Economic Factors as Fundamental Prerequisites
4.2 Institutional Drivers and Determinants of Entrepreneurial Activity
4.2.1 Ensuring Property Rights
4.2.2 Criminality
4.2.3 Corruption
4.2.4 The Burden of Bureaucracy
4.2.5 Financial Capital
4.2.6 Human Capital
4.2.7 Infrastructure
4.2.8 Market Environment: The Effects of Oligarchy and the Structural Dominance of Incumbents
4.2.9 Democratization and Entrepreneurship
References
Chapter 5: Institutions and Entrepreneurial Activity: A Quantitative Empirical Analysis
5.1 Motivation and Objective
5.2 Data and Sample Selection
5.2.1 Dependent Variable
5.2.2 Natural Entry Rates
5.2.3 Institutional Factors
5.2.4 Structural Controls
5.2.5 Detailed Description of Variables
5.2.6 Data Imputation
5.2.7 Identification of Regional Clusters
5.2.7.1 The Heterogeneity of Russian Regions
5.2.7.2 Method 1: An Urbanization-Based Approach
5.2.7.3 Method 2: Economic Geographical Location
5.2.8 A Preliminary Descriptive Analysis
5.3 Perspective 1: A Descriptive Regression Model Approach
5.3.1 Research Design
5.3.2 Results and Discussion
5.3.2.1 Structural Economic Factors
5.3.2.2 Ensuring Property Rights
5.3.2.3 Criminality
5.3.2.4 Corruption
5.3.2.5 The Burden of Bureaucracy
5.3.2.6 Financial Capital
5.3.2.7 Human Capital
5.3.2.8 Infrastructure
5.3.2.9 Market Environment
5.3.2.10 Democratization
5.3.3 Conclusion
5.4 Perspective 2: A Geometric Clustering Approach
5.4.1 Research Design
5.4.1.1 Methodological Approach
5.4.1.2 Data Transformation
5.4.1.3 Definition of Data Subsets and Selection of Variables
5.4.1.4 Statistical Evaluation
5.4.2 Results and Discussion
5.4.3 Conclusion
References
Chapter 6: Conclusions
6.1 Key Contributions
6.2 Implications for Policy and Practice
6.3 Limitations and Future Research
6.4 Conclusion
References
Annex A
A.1 The Persistency of Entry Rates
A.2 Regional Clustering Based on Economic Geographical Location
A.3 Summary Statistics of Regional Clusters and the Reduced Innovative Branches Sample
A.4 Distribution of Entry Rates per Industry
A.5 Predictability of Entry Rates Equal to Zero
A.6 Linear Relationship Between Entry Rates and Standardized Variables
A.7 Linear Relationship Between Entry Rates and Regions/Industries
Annex B
B.1 Regression Results for the Reduced Innovative Branches Sample
B.2 Deviations Between EU and Post-Socialist Natural Entry Regressions
B.3 Deviations Between Results Based on Linear Imputation Versus Imputation According to Bingham et al. (1998)
B.4 The Control Agency Pressure: Entry Relationship Moderated by the Level of Corruption
Annex C
C.1 NACE Industry Sector Overview
C.2 Average Training and Test Data Entry per NACE Industry Sector
C.3 Variance in Mean Entry per Predictor Variable
Bibliography