Visual Analysis of Venture Similarity in Entrepreneurial Ecosystems

Entrepreneurial ecosystems are vital sources of innovation and critical engines for economic growth. In this study, we use text-based analysis, network visualizations, and topic modeling of nearly 60 000 venture business descriptions-i.e., how ventures present technologies and products to key stakeholders including customers, employees, and investors-to examine the structure of 35 global entrepreneurial ecosystems. Rather than using predefined industry classifications, we allow the structural configurations to emerge endogenously revealing a more variegated perspective of venture strategic positioning in entrepreneurial ecosystems. Our study makes several important contributions. First, by examining strategic positioning statements of geographically defined ventures, we contribute and advance our understanding of the geography of innovation and structure of entrepreneurial ecosystems. Our results indicate that there are wide differences in entrepreneurial ecosystem size, structure, composition, and venture strategic positioning. Second, methodologically, we use novel computational approaches and introduce visualization as a powerful means to understand entrepreneurial ecosystems. Third, our results show that ventures from widely different industries often use similar position statements, thus highlighting that ecosystems are indeed not just defined by industries, but also strategic positioning. We conclude with theoretical and managerial implications.