An entrepreneurial system view of new venture creation

This paper reports the results of a two-phase study that explores new venture creation within the context of an entrepreneurial system. First, a genealogy of high technology companies is presented depicting a high spin-off rate resulting from the presence of seven incubator organizations. Second, semantic structure analysis (Spradley 1980) based on semi-structured interviews with founders is used to develop a taxonomy. This taxonomy depicts the relationship among components in one entrepreneurial system, Boulder County, Colorado, that encourages, supports, and enhances regional entrepreneurial activity. Findings indicate that incubator organizations, spin-offs, informal and formal networks, the physical infrastructure, and the culture of the region are related uniquely and interact to form a system conducive for dense high-technology entrepreneurial activity. Additionally, greater rates of new venture formation were found following critical moments in the life of incubator organizations.