Theses *

Entrepreneurial activities follow historical trends!

1. Institutional framework conditions are of significant importance for entrepreneurial independence. An adaptation to changes in institutional framework conditions needs time. After the adoption of the West-German institutional framework the level of entrepreneurial independence in East-Germany has reached the West-German level after 13 years.
2. In East-Germany the persistence of a “regional culture of entrepreneurial independence” can be shown after the adoption of the West-German framework 1989/90. At the time of the system change in the GDR the “heritage of entrepreneurial culture” displayed regional differences in its development in East Germany.
3. Within the start-up activities a path dependency can be seen which historically goes back to the time between the two world wars and could not be completely eliminated in the GDR – in spite of opposed regime policy and propaganda. In East-German regions, which already showed a high degree of entrepreneurial independence in the middle of the 1920s, more enterprises were established after 1989/90 and in this way the consequences of the transformation could be more easily mastered!
4. Where it came to energetic start-up activities at the begin of the system change, the rate of self-employed persons is comparatively still quite high one and a half decades later (2007).
5. Long term, the level of entrepreneurial independence has a positive impact on the prosperity of a region. Hence a culture of entrepreneurial independence represents an important local resource for regional growth.

   Based on our results, the following conclusions can be drawn for a desired reunification of Korea:

6. Founder-friendly institutional framework conditions (e.g. regulation of market entry, insolvency law, etc.) are of great importance for the development of entrepreneurship. A precise and early regulation of proprietary rights is necessary as well as prudent management of restitution claims and/or the reassignment of property. Based on the experience made in East-Germany compensation should be given priority over restitution. The opposite proved to be wrong in East-Germany!
7. Advice and instruction on the conversion to the new institutions can support the necessary adaptation processes positively. A knowledge transfer via the application of executive personnel with experience in market economy is an important instrument insofar as the particular regional framework conditions are adequately taken into consideration.
8. In addition to formal institutions, informal institutions like a culture of entrepreneurial independence (e.g. social legitimacy and recognition of enterprises) are of great significance. From this follows that economic policy has to be tailored to regional conditions! Within the framework of such a “place-based” approach, regional traditions of entrepreneurship (in Korea e.g. the proverbial “traders of Kaesong”) have to be taken into consideration. The development of entrepreneurial potential in the individual regions is more important for the economic development than the distribution of extended workbenches.

Genesis of the results of the Collaborative Research Center 580 *

The above mentioned theses date from the subarea economic and labor market research within the Collaborative Research Center 580 as well as especially from the two following research projects: