Possibilities for Technological Entrepreneurship in Peripheral Space: An Institutional Perspective

Abstract The aim of this research is to examine technological entrepreneurship activity in Israel’s geographical peripheries compared to the core region. Economic theory suggests limited resources and opportunities for technological entrepreneurship in peripheral regions, yet our database includes many such ventures. The study applies institutional theory to explore opportunities for technological entrepreneurship, focusing on Scott’s three pillars: regulative, normative, and cultural-cognitive. The database includes over 15,000 technological ventures that operated or ceased to operate in the southern and northern geographic peripheries, in comparison to the geographic core of Israel between 2000 and 2019. Logistic regressions were used to examine differences between the northern and southern peripheries compared to the core in Israel regarding the institutional opportunities for the development of technological entrepreneurship. The main findings show that academic scientists and technological incubators have contributed to the establishment of technological entrepreneurship in the peripheries. In addition, entrepreneurs establish technology ventures in the periphery with lower odds of profit maximization and higher risks of closure compared to the core of Israel. Furthermore, the periphery facilitates entrepreneurial activity of underrepresented groups including women, entrepreneurs without prior experience, and entrepreneurs without partners. The current research holds significant importance in understanding opportunities for technological entrepreneurship in spaces. We show that institutional forces expand the range of entrepreneurial opportunities in peripheral spaces. This institutional expansion of opportunities is crucial for understanding geographic spaces and their characteristics. Even if a geographic space is perceived as lacking entrepreneurial potential, there are opportunities within that space that can be designed and expanded.