IS MANAGING LOCAL GOVERNMENT THROUGH AN ENTREPRENEURIAL ECOSYSTEM A NEW APPROACH?

This systematic review examines the institutional foundations of regional development from the perspective of an entrepreneurial ecosystem. Drawing on Douglass C. North’s (1990) theory of institutional economics, it emphasises that economic development depends on the quality of institutions and their ability to establish rules that promote economic activity. Formal institutions, despite regional differences, provide a strategic foundation based on the rule of law, reducing uncertainty and promoting sustainable innovation. Special attention is paid to the role of local governments as institutional entrepreneurs, capable of influencing regional development by supporting the creation and functioning of entrepreneurial ecosystems. By synthesising existing research, the review addresses the central question of whether regional management through entrepreneurial ecosystems (RMEE) represents a new institutional and strategic trend in regional development. The results highlight the potential of RMEE to enhance institutional quality, boost regional competitiveness, and contribute to long-term economic sustainability.