Measuring Entrepreneurial Ecosystems: The Regional Entrepreneurship and Development Index (REDI)

In this paper the Regional Entrepreneurship and Development Index (REDI) has been constructed for capturing the contextual features of entrepreneurship across EU regions. The REDI method builds on the National Systems of Entrepreneurship Theory and provides a way to
profile Regional Systems of Entrepreneurship. Important aspects of the REDI method including the Penalty for Bottleneck (PFB) analysis, which helps identifying constraining factors in the Regional Systems of Entrepreneurship. The paper portrays the entrepreneurial disparities
amongst EU regions and provides country and regional level, tailor-made public policy suggestions to improve the level of entrepreneurship and optimize resource allocation over the different pillars of entrepreneurship.