Mapping Local Political Entrepreneurship in Portugal

Abstract

Being political entrepreneurship an issue that has received a high distinction in literature, its empirical evidence is scarce largely derived from limitations of operationalizing the concept. In this article we operationalize local political entrepreneurship considering three main dimensions: 1) fundraising, 2) the possession and/or construction of in- frastructure to support business and social activities, and 3) the supply of support activities and services required for activities business and social. Based on information gathered from 108 Portuguese municipalities, we quantified the over- all political entrepreneurship and in the three dimensions mentioned presenting a ranking of municipalities and the corresponding NUTS III regions. Additionally, through the estimation of econometric specifications, we conclude that the local political entrepreneurship has a positive and significant but indirect impact, through the human capital of employed population, on the creation of new businesses, particularly the knowledge-intensive ones. In other words, the impact of entrepreneurial actions by the local political authorities is much higher the greater the proportion of the employed population with higher education in the region. On this basis, it is not enough that local authorities are ‘entrepreneurial’; in addition to the public actions of fundraising, construction of infrastructures and promotion of activities for business promotion, one needs to ensure that the region is endowed with an adequate level of absorptive capacity, i.e., investment in human capital and R&D activities.