Incentivizing knowledge institutions for entrepreneurship and society

Abstract

PurposeGoing beyond the traditional approach of formal and informal institutions as antecedents of entrepreneurship (directly) and development (indirectly), this paper seeks to explore knowledge institutions as a necessary input for entrepreneurship and the development of societies.Design/methodology/approachInstitutional economics lenses are utilized to observe other factors (e.g. the number of R&D staff and researchers from the public sector) that involve laws and socialization processes, which at the same time create knowledge useful for entrepreneurs and society. These ideas are tested through a sample of 281 observations from 17 autonomous communities and two autonomous cities in Spain. The information coming from the Global Entrepreneurship Monitor (GEM), Ministry of Economics, Industry, and Competitiveness, and INE (Instituto Nacional de Estadística), was analyzed through 3SLS, which is useful for a simultaneous equation strategy.FindingsKnowledge institutions such as the number of R&D staff and researchers from the public sector are found positively associated with entrepreneurship, which is a factor directly and positively linked to economic development across Spanish regions.Originality/valueThe findings help the operationalization of other institutions considered in institutional economics theory and its application to entrepreneurship research. Moreover, the results bring new insights into the knowledge spillover theory of entrepreneurship in the public sector, in which the institutional analysis is implicit.

How Effective Is Entrepreneurship Education in Schools? An Empirical Study of the New Curriculum in Spain

“…An education that understands these competencies and empowers young people to have initiatives, make decisions, and develop projects that promote collective socio-economic improvements is an educational priority [18]. Equipping students with these tools will help them in their personal [19] and professional development [20,21] and contributes to the innovation and economic progress of society [22]. These skills are essential in times of digital revolution and changes in the labor market [23].…”