English to Serbian Marketing Economics

The ‘‘entrepreneurial regionalists’’ suggest that what is missing is the entrepreneurial ethos, defined as the willingness to take risks in pursuit of big gains and the ability to develop, commodify, and commercialize the outputs of applied research (Audretsch, 2004). They attribute the absence of this ethos to market and governance failures that prevent cooperative competition among small firms and inhibit knowledge spillovers. Their solution is place management to enhance the ability of small and medium size firms to reach their break through potential. The argument about the potential contribution of small firms to the innovative capacity of regions is a compelling one given empirical evidence that small firms ‘‘innovate’’ with greater alacrity than large firms (Hicks and Hegde, 2005).