Innovation and Entrepreneurship in a Space-time Framework Based on the Case of Poland

Abstract

Although innovation and entrepreneurship have been subjects of researchers’ interests for years, nevertheless both the concepts and the relationships between them remain controversial. Since different indices are accepted for the measurement of these categories, the question is whether the relationship between them depends on the choice of measures. The aim of the paper is to indicate the innovation impact on the entrepreneurial process with regard to different measures of these concepts. The research was conducted with the use of regression analyses as a method and yearly data for Polish regions in the period 2003–2018. At the initial stage of the research as many measures of innovation and entrepreneurship as possible were introduced into the estimation of regression function parameters. Statistically insignificant variables were deleted at later stages of research. This research confirms that innovativeness and entrepreneurship are broad concepts and the relationship between them depends on the choice of measures. Saturation with enterprises and saturation with start-ups seem to be more sensitive to innovation than other measures of entrepreneurship. Innovation seen as input, measured by spending on research and development (R&D) has a bigger influence on entrepreneurship than the output innovation measured by revenues from innovative activities. Considering a relatively low level of explanatory power of innovations, it seems they are not the only factor influencing entrepreneurship.