The entry reviews the current state of research on the role of entrepreneurship in regional development. A main focus is on the interaction between new businesses and incumbent firms that often results in improvements in economic performance. The level of regional entrepreneurship, particularly the number and quality of new businesses, and the competition between newcomers and incumbent firms are considerably shaped by the regional context. Regional levels of entrepreneurial activity tend to follow long-term trends that can be shaped by regional cultures and change only rather slowly. Hence, a policy that aims to improve entrepreneurship in a region needs a long-term perspective.