Why Ecosystems Matter

At a time when entrepreneurship is globally recognized as a tool for solving urgent societal challenges—climate adaptation, inclusive growth, digital transformation—Erik Stam, a professor of Strategy, Organization and Entrepreneurship and former dean of the Utrecht University School of Economics, asks a foundational question: What makes entrepreneurship truly productive?
His answer, grounded in decades of rigorous research, is both provocative and pragmatic: the quality of the entrepreneurial ecosystem determines whether startups generate broad-based economic and social value or merely churn capital with little lasting impact.
Stam’s widely cited framework defines an entrepreneurial ecosystem as a dynamic set of interdependent actors and factors—ranging from culture and finance to leadership and demand—working together to produce “productive entrepreneurship.” This type of entrepreneurship creates not just firm-level success but aggregate welfare, boosting innovation, job creation, and regional competitiveness.

From Theory to Measurement

Stam doesn’t stop at metaphors. He has developed one of the most operational models in the field—a ten-element ecosystem index tested extensively in the Netherlands and cited as a benchmark globally. His 2021 paper with Andrew van de Ven identifies three key propositions:

• Co-evolution: Ecosystem elements evolve in interdependence, requiring a systemic view.
• Upward causation: Ecosystem quality predicts entrepreneurial output, particularly the rate of high-growth firms.
• Downward causation: Successful entrepreneurs reinvest in and reshape the ecosystem itself.

Through this model, Stam offers policymakers a diagnostic tool to assess strengths, detect bottlenecks, and design place-based interventions rooted in systems thinking.

A Voice of Urgency in an Era of Stagnation

In a recent paper co-authored with Maria Minniti and Wim Naudé, Stam revisits William Baumol’s classic typology of entrepreneurship—productive, unproductive, and destructive—with fresh eyes. They argue that in many advanced economies, entrepreneurship is becoming less productive due to structural constraints: rigid regulation, distorted incentives, and a rise in “zombie firms” shielded from market discipline.
The paper warns that entrepreneurship policies, once heralded as engines of growth, may now be contributing to stagnation if they fail to differentiate between activities that create real value and those that merely shift it. Stam and co-authors call for a renewed focus on institutional quality, democratic governance, and scientific progress as the conditions for reactivating productive entrepreneurship.

What to Expect in Cancún

At the 2025 ANDE Global Annual Conference, Stam will contribute to discussions at the intersection of research and real-world application. Expect insights that challenge comfortable assumptions, grounded in a systems perspective that empowers ESOs, investors, and governments to prioritize not more entrepreneurship—but better entrepreneurship.
Because in Stam’s words, ecosystems aren’t just backdrops—they’re engines. And whether they produce flourishing ventures or stagnant inefficiencies depends on how we design, govern, and evolve them.