Developing entrepreneurial ecosystem: a case of unicorns in China and its innovation policy implications

The concept of the entrepreneurial ecosystem (EE) has become increasingly popular among policymakers because of its potential to drive economic growth. In many countries, the promotion of EE has been linked with innovation policy but little research has been done to examine whether such policy can facilitate EE's development. Using the case study method to examine the growth of China's unicorns, which are productive entrepreneurial outputs of EE, this paper investigates the process of EE's emergence and development, and the role of government policies, including innovation policy, in promoting EE's growth. The paper advances three policy implications derived from the case study; first, the important role of government policies in creating institutional contexts; second, developing informal institutions, and third, implementing a systemic intervention, to promote EE's emergence and development.