Towards a More Regionally Inclusive Economy: UK & Germany

This paper compares the contribution by regions to net enterprise growth in the traditional economy with the online platform-enabled economy for the UK and Germany from 2010 to 2015. Our study shows that the growth in eBay-enabled firms is more evenly spread across regions in both countries. We also find it to be less concentrated to regions with high GDP per capita levels than traditional enterprise growth. In short, more regions and more poor regions are able to contribute to total enterprise growth in the platform-enabled economy than in the traditional economy. Our findings point to the online platform model being a powerful tool for driving more inclusive and broader participation in entrepreneurial activity and for expanding access to economic opportunities throughout a country. We believe that this should be reflected in national policies and actions aimed at promoting regional and rural development.