Dr. Korneliusz Pylak (p), Prof. Jean Bonnet

This paper examines the long-term socio-economic trajectory of the ‘Military Vendée’ region in France through the psychological-sociological framework of Everett Hagen. By applying Hagen’s theory of the ‘withdrawal of status respect,’ the authors analyze how the historical trauma of the Vendée Uprising (1793–1794) served as a catalyst for the region’s unique post-WWII economic surge, known as the ‘Miracle Vendéen.’
Hagen’s model suggests that significant social change occurs when a well-entrenched group is disparaged by a dominant power, leading to a multi-generational shift in personality structures. The study identifies the French Revolutionary government’s suppression of the Vendée—marked by the execution of the King and the violent Levée en Masse—as the ‘precipitating event.’ This conflict resulted in a demographic catastrophe, with an estimated 20% to 25% of the population killed.
Following this trauma, the region entered a prolonged ‘retreatist’ phase. For several generations, the Vendée population internalized their frustration, developing an apathy toward national values while reinforcing a distinct, localized identity. Hagen posits that this retreatism serves as a necessary incubation stage, eventually giving rise to ‘innovative personalities’ who seek to regain status through entrepreneurial activity rather than political integration.
The paper analyzes how this psychological shift culminated in the 20th century. Driven by a ‘self-help’ culture and a refusal to rely on the central state—which had historically marginalized them—the region developed a highly resilient industrial model. Central to this is the ‘Choletais system,’ a territorial network characterized by: 1) social cohesion (an absence of class rivalry and a strong consensus around the value of the enterprise); 2) disciplined competition (a network of Small and Medium Enterprises (SMEs) that cooperate locally while competing globally); 3) productive excellence (a focus on labor-intensive, "low-tech" sectors (textiles, footwear, agri-food) that have successfully integrated modern robotics and digital tools.)
Statistical evidence from INSEE and geographical analysis confirm that the Vendée has maintained a high ‘productive’ core, outperforming other French regions in resilience, particularly following the 2008 financial crisis. The authors conclude that the Vendée’s development is essentially a ‘form of culture’—a generational response to historical ‘othering’ that transformed a disparaged identity into a powerful engine for technological and social change.

Prof. Michael Fritsch (p), Prof. Michael Wyrwich

We examine the long-term relationship between regional levels of self-employment and economic performance. Regional self-employment rates are highly correlated over long time periods exceeding a century. Persistently high and increasing levels of self-employment are significantly associated with relatively high current levels of Gross Value Added per capita. That such a relationship cannot be found for East Germany is likely due to forty years of an anti-entrepreneurial socialist regime after World War II in this part of the country. We also find a positive relationship between self-employment and patenting that may provide an explanation for the relationship with Gross Value Added.

Dr. Eckhardt Bode, Lena Fiedler, Prof. Alina Sorgner (p)

This paper contributes to the identification of mechanisms through which entrepreneurship reduces income inequality in developed countries. It shows that higher-quality (innovative, opportunity-driven, or growth-oriented) entrepreneurship reduces inequality by reducing the income share of the upper tail. This could be attributed to Schumpeterian creative destruction. Higher-quality entrepreneurship additionally increases the income share at the lower tail. A possible mechanism could be job creation. Necessity entrepreneurship has contributed less to reducing inequality, by contrast. A striking result is that the creative destruction mechanism weakened significantly after 2010s, pointing toward a declining role of entrepreneurship in reducing income inequality.

Dr. Sofia Wixe (p), Pr. Charlotta Mellander, Dr. Lina Bjerke, Dr. Deborah Strumsky

This paper examines the role of entrepreneurship in shaping growth dynamics in Sweden’s micropolitan regions, municipalities located between metropolitan cores and rural peripheries. Using longitudinal data for all 290 Swedish municipalities from 2007 to 2023, we estimate dynamic panel models to assess how entrepreneurial activity, primarily measured by new firm entry and micro-firm prevalence, affects population, employment, productivity, and wage growth. Our findings reveal that micropolitan regions exhibit distinct growth patterns. Moreover, a higher share of micro firms is robustly associated with population expansion, while entry rates show limited short-run effects on structural upgrading. These results underline the importance of entrepreneurship for extensive growth margins in intermediate regions and highlight how local conditions mediate its impact, offering insights for place-based strategies aimed at inclusive regional development.

Marina Van Geenhuizen (p), Dr. Victor Scholten