Entrepreneurial Ecosystems and Regional Economic Resilience: A Multi-Level Empirical Analysis

Purpose: This study investigates the impact of institutional quality, human capital, access to venture capital and inter-firm network density (dimensions of the entrepreneurial ecosystem - EE) on regional economic resilience across its dimensions (shock resistance and recovery speed). Design/Methodology: Applying hierarchical linear models and instrumental variable regressions on an unbalanced panel of 214 NUTS-2 regions for 22 OECD countries between 2004 and 2022, we examine the effects of the Global Financial Crisis (2008-2010) and the COVID-19 pandemic (2020-2021) shocks on EE. Findings. One standard deviation improvement in composite EE index results in 0.31 standard deviations improvement in shock resistance and approximately 11 months' faster recovery. Institutional quality and network density are the main drivers of EE impact, venture capital availability moderates EE-recovery interactions and national regulatory quality is a country-level enhancer for EE-resilience outcomes. Originality/Value: This is the first multi-shock multi-country analysis of EE-resilience interrelations that relies on a theory-based multi-level design and provides direct policy guidance for evidence-informed innovation policy.