How public sector entrepreneurship strengthens HEI-SME knowledge interactions?

The paper explores the importance of strengthening HEI-SME knowledge interactions by national and international governments aimed at stimulating local economic development. In England UK, the challenge of public sector... [ view full abstract ]

The paper explores the importance of strengthening HEI-SME knowledge interactions by national and international governments aimed at stimulating local economic development. In England UK, the challenge of public sector entrepreneurship persists against a background of global market failure, persistent austerity and competition. This paper is positioned within emergent public sector entrepreneurship theoretical debates and ongoing policy that pursues a rebalancing towards private sector led partnerships. Prior macro level studies show HEI-SME knowledge interactions to be diverse partnerships. This paper by contrast seeks to extend public sector entrepreneurship theories through a longitudinal micro level study of Local Enterprise Partnerships (LEPs) in England. Findings draw insights into key characteristics that motivate strengthening HEI-SME knowledge interactions. The study reveals a ‘competitive tension’ has emerged in private-led local enterprise partnerships as public value is habitually overlooked by risk-taking, self-interest and competition. These effects are similar with orthodox theorisations of public sector entrepreneurship that problematize the struggles embedded in private-public partnerships locked into path dependency on vital knowledge capital. Findings suggest a deeper understanding of strengthening HEI-SME values to be important in developing more innovative forms of public sector entrepreneurship for local economic development.