The impact of national political culture on the Global development of Entrepreneurial ecosystems

Abstract

Research background: Numerous attempts not only in the Russian Federation but also in many other countries to copy successful examples of the entrepreneurial ecosystem (EEs) from the USA did not lead to equally outstanding results. In scientific literature and in the media, the underestimation of the influence of informal institutions, also called cultural traditions of the country and business customs, is increasingly cited as a reason for that unfulfilled expectations. We postulate that the main reason for unfulfilled expectations lies in the underestimation of the influence of political culture. Purpose of the article: the goal is to prove the hypothesis that the prevailing culture of statism hinders the development of effective relationships between two key EEs actors - founders and venture funds. Methods: analysis of data from a wide range of publications by keywords and their classification into groups of factors that influence on EEs. Findings & Value Added: - The mature EEs dictates the rules to every new member, but the evolving EEs itself obeys the code of conduct that existed before it appeared. - The larger the share of state-funded startups, the stronger the distorting influence of the state in the sensitive period of EEs formation. - As a result of the contradiction that has arisen between the cultural environment and the need for security and support for startups, there is an outflow of startups to EEs with a friendly environment. This is the main reason for the lack of private venture capital in the country.

Keywords

• innovation ecosystem
• venture capital
• startups
• informal institutions