Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: In this paper, we discuss three factors of critical importance for regional economic develop-ment, namely entrepreneurship, social capital and governance. We conclude firstly that the relationships between regional entrepreneurship, regional social capital, regional governance and regional economic development are complex and interdependent. Secondly, to influence these factors and the relationship between them policy-makers must have a long-term per-spective and be both patient and persistent in their efforts. It is our hope that this paper pro-vides both a somewhat better understanding of the relationships between regional entrepre-neurship, regional social capital, regional governance and regional economic development and some help to national and regional policy-makers in formulating and implementing the proper long-term regional policies needed.

Keywords: Regional economic development; entrepreneurship; social capital; governance

JEL-codes: D70; G38; L26; R58

17 pages, June 13, 2012

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