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Learning from startup ecosystems’ examples worldwide: how Lisbon can use its own uniqueness to benefit its young entr epreneurial hub
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What are the common characteristics of successful entrepreneurial ecosystems worldwide that Lisbon can use on its benefit in the process of building its own? Aiming to help answering that question, this Master Thesis analyses qualified examples globally of cities that have built a healthy startup ecosystem, together with incipient not so mature cases, while drawing parallels with the newly created one in Lisbon.
The methodology used was to compare examples from different continents – South America (São Paulo,
Brazil), Africa (Lagos, Nigeria), Middle East (Tel Aviv, Israel) and North America (Boston, United States)
-, to identify uniqueness among them that can either be used in Lisbon’s favour, or ultimately be marketed as one of the city’s competitive advantages for the goal of attracting (and retaining) awareness, funding and talents.
The approach combined a specific description of the ecosystems selected and a general quantitative model. Jointly with the descriptive analysis of the entrepreneurial ecosystems mentioned and a final section highlighting the takeaways from each one of them, an own model was created to identify those common elements that helped these ecosystems to succeed. Based on an organogram from Stam (2015) the key elements were divided into "System Conditions": Networks, Leadership, Finance, Talent, Knowledge and Support services/Intermediaries, and "Framework Conditions": Formal Institutions, Culture, Physical infrastructure and Demand. Those ten elements were quantified using a proxy from a similar category chosen from a list of 101 of published indexes by Global Innovation Index 2018. A factor analysis was then conducted.
What is evidenced is that every ecosystem is unique and has been built under a singular set of conditions
and own characteristics. Hence, Lisbon has its own strengthens, such as good weather, great infrastructure and a prosperous business environment to boost its entrepreneurial movement. That specific picture is also enriched by the factor analysis’ outcome, which is that “Framework Conditions” are the key ones from the ten considered, notably Formal Institutions, Culture and Physical Infrastructure, as well as Knowledge as a “System Condition”. That takeaway plays certainly in Lisbon’s favour as the country is highly rated in all those factors. An entrepreneurial ecosystem’s success can be therefore interpreted as being positively correlated with a country’s development, past productivity, quality of life and a possible consequence of great implemented public policies.
Moreover, a well-established entrepreneurial movement ultimately brings a real-life benefit for the population, as well as a pull force in organizational behaviour. It comes with a positive impact across the whole economy, making it also beneficial for the continuance of a good quality of life, development and improvement of future productivity. Thus, the needed basis for the creation is as well improved by its further development. It becomes, as vastly said, a positive snowball effect.
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Entrepreneurship Global Markets Strategy