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September 14, 2026Small Business EconomicsOpen Access

Entrepreneurial ecosystems, economic complexity, and venture-oriented entrepreneurship in German regions

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Authors

NHNils HandlerMBMatthias Brachert

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Overview

Panel analysis reveals heterogeneous links between economic complexity dimensions and venture entrepreneurship across German regions, highlighting how specialized capabilities drive startup growth.

Key Points

  • To examine how distinct dimensions of regional economic complexity—industrial, technological, and occupational—are associated with growth- and venture-oriented entrepreneurship.
  • Analyzed German labor market regions across three structural capability dimensions: industrial complexity, technological complexity, and occupational complexity.
  • Tracked entrepreneurial outcomes including regional shares of high-growth firms, gazelles, venture-capital-backed firms, venture capital volume per capita, and broader performance indicators.
  • Estimated panel regression models using region and year fixed effects to identify dimension-specific associations.
  • Industrial and technological complexity demonstrated consistent positive associations with high-growth firm shares and broad regional economic performance indicators.
  • Occupational complexity correlated most strongly with the concentration of gazelles (young, rapidly scaling enterprises).
  • Venture-capital-backed firms and per capita investment volumes correlated positively across complexity dimensions, with industrial complexity exhibiting the most robust relationship.

Cite This Study

Handler et al. (2026) studied this question.

synapsesocial.com/papers/6aa7b26d0926e14a848b0d62https://doi.org/10.1007/s11187-026-01278-5
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