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Regional Entrepreneurial Transformation: A Complex Systems Perspective

In this paper, I develop a descriptive process model of regional entrepreneurial transformation based on a conceptualization of regional economies as self‐organizing complex systems that consist of interdependent subsystems as represented by heterogeneous actor groups. It is proposed that a change in a region's entrepreneurial profile requires shifts in collectively shared subsystem‐level schemata that cause actors to behave in ways that prevent emergent entrepreneurship. The model highlights four factors that contribute to the initiation of a positive feedback loop through which simultaneous schemata changes and consequently a regional entrepreneurial shift occur. Theoretical and policy implications are discussed.