1 Introduction
As part of a longer-term global trend, state universities in Germany are being transformed from institutions focussing on teaching and research to increasingly assume a third role in sustainable regional and economic development (Etzkowitz and Leydesdorff
2000; Abreu et al.
2016). In doing so, they are conceived to much more strongly support knowledge spillovers and as part of this also to promote stakeholder involvement in governance processes at the regional level. They potentially will play a far more important role in economic revitalization or further development of regions. Because large-scale and comprehensive societal transitions towards sustainability are considered to be fundamentally knowledge-driven, this also implies a significantly heightened role for universities in sustainable regional development (Sedlacek
2013).
Concerning multi-stakeholder governance and knowledge transfers in the entrepreneurship context, the knowledge spillover theory of entrepreneurship (Agarwal et al.
2007,
2010) and notions of entrepreneurial ecosystems and innovation systems (Markard and Truffer
2008; Audretsch and Berlitski
2013; Stam
2015; Theodoraki et al.
2018) play a key role. Both of these stress that knowledge investments by firms and universities need to be linked to entrepreneurial activities so that knowledge spillovers result in a win-win situation in a wider ecosystem (Agarwal et al.
2007).
In our study, we focus the analysis on how university-related support programmes for entrepreneurship contribute to sustainable development of regions in terms of supporting a balance of economic and socio-ecological benefits in the region (e.g. Cohen and Winn
2007; Wagner and Schaltegger
2010). We relate this to the role of universities in supporting knowledge spillovers in the entrepreneurial ecosystems and innovation systems of the region they are in (Stam and Spigel
2016). Given that those universities are usually public sector organizations, they have a comparatively greater propensity to be at least to some extent embedded in a region owing to their third role mentioned above.
Our research follows a comparative case study design (Yin
2003). Two units of analysis are applied: the university-linked support programme and effects on sustainable regional development. These are related to the knowledge spillover theory of entrepreneurship (Agarwal et al.
2007,
2010), different functions in entrepreneurial ecosystems and innovation systems (Stam and Spigel
2016; Markard and Truffer
2008) and a differentiation of effects based on the theory of change (Carman
2010; Funnel and Rogers
2011; McLaughlin and Jordan
1999).
For reasons of comparability and comprehensiveness, three cases in Germany were selected, namely an incubator, an entrepreneurship education module, and a sustainability education program. These were analysed comparatively in order to clarify the university links of each initiative and how it generated knowledge spillovers and involved public actors, as well as what kind of public good was delivered. Our study thus contributes to providing a more differentiated view of how to implement entrepreneurial and innovation-oriented strategies for social sustainability and protecting the natural environment through different configurations of university-related knowledge spillover mechanisms. In the remainder of the paper, we next review the relevant literature and condense it into a conceptual model that can guide our analysis (Section
2). We then detail our chosen method including the procedure applied to generate our sample, the data collection processes and the analysis strategy (Section
3). Subsequently, we present our empirical material in detail on a case-by-case basis (Section
4). Following this, we present the results of our analysis based on a case comparison (Section
5). The paper finishes with a discussion and some overall conclusions (Section
6).
5 Comparative case analysis
To assess regional sustainability impacts, we analyse cases comparatively in order to clarify the degree to which the university was the originator of the initiative, how it linked to public actors and generated knowledge spillovers and how regional impact was achieved (see below and Table
4).
Table 4
Comparative case analysis based on the logic model of the theory of change
UTG Augsburg | - Entrepreneurship experimentation - Incubation - Resource mobilization - Networking | 140 supported firms since 1998, of which approx. 40 are internationally active | - Support in foundation process of firms and of regional networks for sustainability | E.g. start-up Corrmoran (crucial inputs for technology and entrepreneurial processes) | - Institutionalization of a learning and networking space for sustainable development; - Contribution to regional cluster activities - New firm foundation |
MBA Sustainability Management | - Influence on the direction of search (sustainability) - Combined education in sustainability management, innovation, and entrepreneurship - Interactive learning | 48 courses (each 30 h); transfer module; final practice workshop; thesis; 5 courses dedicated to entrepreneurship; 8 courses with entrepreneurship content as part of the course; 40 graduations per year since 2005 | - Support in new eco-venture founding processes - Support of knowledge transfer and diffusion processes | E.g. start-up IntelliSolar (crucial inputs for venture-specific human capital of the founder, networks for business development and recruitment) | - Acceleration of decentralized solar energy production - Acceleration of energy transformation on the regional level; - New firm foundation |
Eco-Venturing | - Influence on the direction of search - Entrepreneurship education and experimentation - Incubation - Resource mobilization - Networking | 44 supported green start-up projects, incl. elaborated sustainable business models, and 170 students with sustainable entrepreneurship expertise since 2009 | - Support of new firm foundation through entrepreneurial education - Incubation and acceleration of sustainable business ideas | E.g. start-up Coolar (crucial inputs to the venture’s business case, market and competitor knowledge, and business development) | - Reduction of greenhouse gas emissions - Contribution to the profile of the region as having a sustainable and resilient economy - New firm foundation |
Based on our literature review, we structure the comparative case analysis along the different categories developed by the theory of change. In these categories, we build on the entrepreneurial ecosystem and innovation system literatures to clarify and structure the inputs provided in each case in a systematic manner.
We then use the knowledge spillover theory of entrepreneurship as our framework to categorize different types of outputs that represent benefits from the programmes and to guide our interpretation when analysing specific start-up examples to illustrate in more detail how the programmes led to or supported the founding activities of specific individuals. Nevertheless, we find more convergence in terms of the outputs, outcomes and longer-term impacts across the three programmes, which we address in Section
6 of the paper.
A number of functions can be identified as inputs to entrepreneurial and innovation processes in each of the cases (see Table
4), but the combination of functions is different for each of them. This is related to the differing activity profiles, which create individual forms of the support provided. Overall, what can be learned from the comparative case analysis is that the three cases present different configurations of university-related support programmes for sustainable regional development. This reveals different paths and processes in order to strengthen sustainable entrepreneurial ecosystems, beyond the classic incubator, which for example Theodoraki et al. (
2018) analysed empirically.
To illustrate, while the UTG is more of a classic incubator providing a mixture of indirect (e.g. finance and office space) and direct (e.g. university spin-offs moving into the UTG) university support, the idea generation and facilitation of the Eco-Venturing case as a module is more early-stage with a stronger focus on influencing and supporting the idea and business model development. In comparison, the MBA is not a module like for example Eco-Venturing, but a comprehensive sustainability education programme that provides support across a much broader range of themes and skills. The heterogeneity found in our comparative case analysis is an important insight that is developed upon in Section
6.
Comparing the three examples of firms that received support from our case programmes, we find clear evidence of knowledge spillovers from universities to start-ups as proposed by the knowledge spillover theory of entrepreneurship. More specifically, we find a diverse set of mechanisms governing how knowledge spilled over in these instances from the university either in the form of technology, market information, network access or entrepreneurial processes such as funding access, business model development or team formation. It also becomes clear that different types of knowledge matter simultaneously, but that their relative importance differs. For example, technology and entrepreneurial processes were particularly important to Corrmoran, whereas for IntelliSolar, it was network knowledge. Coolar’s main gains were market information and input on entrepreneurial processes.
While these examples show that the programmes certainly contributed significantly to the development of the entrepreneurs in question, other support structures were important too. The case descriptions provided mention several specific features that can be identified individually as being a form of strategic resource provided to the ventures, in that the benefit could not be accessed through other support structures. However, it also becomes clear that such programme features are highly idiosyncratic and thus depend strongly on the specific combination of exemplary entrepreneurs and (overall) support structures, as has also been confirmed by Kolb and Wagner (
2018) in the case of academic entrepreneurship generally. We can however state with confidence that such unique features of the programmes exist in most cases but differ across specific start-ups and probably also in terms of when they provide the greatest benefit. This aspect is elaborated upon in the next section, including from a more holistic perspective in terms of a configurational notion.
Furthermore, clearly, the impacts generated through the three examples cannot be fully assessed because all the firms have only recently entered the market. However, all three examples reveal that an initially mainly regional impact may extend considerably beyond the region in the longer term. This is the case for Corrmoran that was ultimately acquired in a trade sale by a larger incumbent that was active beyond the region. Similarly, IntelliSolar recently entered new markets in other countries. Finally, the business activities of Coolar were also aimed at the international market from the outset. This is an important insight, which we will expand upon in Section
6.
6 Discussion and conclusions
Based on the increasingly relevant third mission in regional and economic development that universities globally are urged to take on, this study builds on three case studies in Germany and analyses how university-linked support programmes contribute to sustainable entrepreneurial ecosystems and which impacts this delivers for sustainable regional development. Our comparative case study analysis reveals a differentiated view of entrepreneurship-related interventions.
First of all, we find evidence addressing our research questions that sustainable entrepreneurial ecosystems are positively affected by university-linked support programmes through certain knowledge spillover modes. For example, in the case of UTG Augsburg, the university’s role as one instigator of the initiative was clear (along with the state of Bavaria, the local chamber of industry and commerce, and other actors). That role then triggered support by other actors. At the same time, the university also provided direct inputs, such as spin-offs that entered the incubator. Other spillover modes are the supply of entrepreneurial knowledge, incubation activities and support services for green start-ups through the Eco-Venturing module. Also, the university provides knowledge spillovers to the entrepreneurial ecosystem via the system functions (Table
1) of influencing the direction of search, learning, resource mobilization and networking.
One major insight flowing from the current study is that university-linked support programmes can improve the entrepreneurial ecosystem for sustainable entrepreneurship through different pathways and at different intervention points. For example, interventions can be undertaken early as in the Eco-Venturing and MBA cases (which focus more on idea generation/identification and opportunity evaluation) or later as in the UTG case (which has a stronger focus on opportunity exploitation and incubation).
One main reason emerging from the cases for the possibility of different pathways and roles of universities is that universities operate under specific regional conditions and therefore choose and enable specific roles or pathways, and also determine intervention points that best fit such conditions. As a result, different types or configurations that develop as stable outcomes of such a fitting process are identifiable. Ultimately, context thus plays an important role for any university-linked support programme. In our cases, for example, the cluster programme in Bavaria and the strong civil society inherent in the “peace city” Augsburg, which has a strong emphasis on local Agenda 21 processes and networking, shaped the UTG activities.
In contrast, Lower Saxony lacks comparable top-down initiatives, meaning local bottom-up initiatives gain more freedom to operate and at the same time a stronger need to provide substitutes for critical elements of the support programmes that are provided through the cluster management in Bavaria. These differences between the two states suggest that different configurations of university-linked support programmes can emerge depending on how context and the conditions at the university interplay and replace or complement each other to facilitate the system functions necessary to drive improvements of the regional ecosystem supporting sustainable entrepreneurship. This nuanced view is important for a better understanding of the potential and role that universities have in supporting sustainable entrepreneurship ecosystems.
Our comparative analysis based on the theory of change and the entrepreneurial ecosystem model by Stam and Spigel (
2016) was applied to determine positive effects on sustainable development in the region. The analysis revealed both direct and short-term outputs in terms of entrepreneurial activity and less direct, broader long-term outcomes. The tangible direct outputs include both specific examples of successful ventures and more general contributions to sustainable development in the region (see Table
4).
We further contribute by expanding the analysis of barriers and success factors affecting how universities can support sustainable entrepreneurship and of how support programmes could be actioned (e.g. Fichter and Tiemann
2018). The study also shows how such programmes trigger sustainable regional development outputs, outcomes and impacts, which addresses a gap in the literature. Depending on the context, what may be considered a barrier can become an opportunity as in the case of the MBA programme where the lack of a specific support system has created space and incentives to become entrepreneurial and use a window of opportunity to establish the MBA. In turn, the MBA itself created a support programme and offered the incentives and knowledge necessary to found a company (IntelliSolar). Specific positive impacts that can be identified in our cases are a reduction of greenhouse gas emissions (by increasing the proportion of energy generated through renewable means in the region), the provision of additional employment with lower health risks and the intensification knowledge spillovers in regional networks, as well as the internalization of externalities flowing from improvements to knowledge and social feedback loops. The latter can also be seen as the emergence of new capabilities in the region that make it more resilient and sustainable.
The cases presented here also illustrate the potential for long-term effects. Clearly, what starts as a purely regional impact can subsequently exert an effect extending considerably beyond the original region, especially when sustainable regional development is successful. This expansion of effect may mean that the creating region does not retain the largest share of the benefits but equally that a smaller share of a bigger benefit ultimately still makes a strong regional impact. This suggests that even start-ups that do not target significant regional impacts but making a strong positive impact on sustainable development at the national or global level can ultimately substantially benefit a region — a dual regional paradox that merits further exploration.
Related to this insight, while the linear logic model applied in first approximation covers the most important causalities to answer our research question, we urge future research to explore non-linear extensions to the framework to address this potential limitation. For example, within our chosen context, future research might comprehensively assess impacts, which would also support an improved assessment of long-term effects.
Building on above insights, in terms of the broader question of how and with what impact university-linked programmes can support sustainable entrepreneurial ecosystems, both directly and indirectly, we exposed strong evidence that universities taking on a third mission prompts crucial activities that overcome knowledge filter issues (Braunerhjelm et al.
2010). In doing so, they ultimately enable and improve important ecosystem functions supporting sustainable entrepreneurship. This occurs for example in terms of not only providing education and learning as a basis for knowledge spillovers, but also through more complex and potentially less direct knowledge spillovers, such as the generation of spin-offs.
Our findings have implications for policy-makers and academics. Clearly, a sustainability focus in university-linked support programmes can play an important role in fostering sustainable entrepreneurial ecosystems and sustainable regional development. The cases analysed in our sample all represent programmes with an explicit sustainability focus that is an element of institutional entrepreneurship; a finding that responds to calls in the literature for more research in this area (Hall et al.
2010). Conventional entrepreneurship support, however, though increasingly available with the involvement of universities, typically lacks such a sustainability focus (Theodoraki et al.
2018; Tiemann et al.
2018).
Relating our findings back to our conceptual foundations in terms of the knowledge spillover theory of entrepreneurship, entrepreneurial ecosystems and the theory of change, we find strong evidence of a process involving different actors providing inputs as the basis for activities that ultimately generate functions in order to achieve effects at different levels (outputs, outcomes and impacts). We also identified different feasible configurations based on region-specific fit and substitution options. Identifying the possibility of universities using different pathways and intervention points is an important insight that policy-makers should take into account and that deserves further attention in academic research.
At the same time, an important implication for universities wishing to become involved in support programmes for sustainable entrepreneurial ecosystems is that they should analyse their specific regional context to ensure that their chosen configuration and design (e.g. in terms of intervention points, roles or pathways) fit the specific regional situation in the best possible way. This applies equally to support programmes with a more environmental focus or those with a more social focus. In turn, successful implementation of regional strategies can ultimately have strong positive impacts beyond the region. Both universities and (regional) policy-makers should take this wider impact into account at the outset. Doing so would enable them to set realistic expectations for the regional development results they target. To conclude, our article addresses calls to research more on the process and effect dimensions of (sustainable) entrepreneurial ecosystems (Agarwal et al.
2007,
2010; Stam and Spigel
2016). In particular, our case-based analysis contributes by highlighting different configurations of university-linked programmes supporting sustainable entrepreneurial ecosystems. In doing so, we complement and extend work focussing on specific configurations and front-ends of sustainable entrepreneurial ecosystems (e.g. Theodoraki et al.
2018; Fichter and Tiemann
2018). Overall, our paper should therefore extend understanding of the pathways available for universities to support sustainable entrepreneurial ecosystems by enabling knowledge spillovers and the impact doing so can have on sustainable regional development.
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