Linking innovation and entrepreneurship to economic growth

Abstract

Purpose The purpose of this paper is to study the linkage of innovation and entrepreneurship to economic growth in countries with different levels of development. Design/methodology/approach Following quantitative analysis, the authors carry out three empirical approaches to examine the effects of innovation and entrepreneurship on competitiveness. In accordance with their initial study framework, they test the conceptual model of competitiveness through applying descriptive statistics, structural equation modelling (SEM) and hierarchical cluster analysis. Descriptive statistics and SEM data sources from the Global Competitiveness Report of the World Economic Forum were analysed for 148 countries. The hierarchical cluster analysis furthermore analysed Global Entrepreneurship Monitor data on 67 different countries. Findings The study confirmed that innovation and sophistication factors are crucial to the competitiveness of economies. The study also revealed the definition of five clusters relative to the competitive performance of advanced economies following the introduction of new entrepreneurship variables. Originality/value This research aims to open up avenues for the development of regional competitiveness studies.

How Effective Has Global Entrepreneurship Been As A Tool For Economic Growth?

“…It is mainly facilitated and occasioned by the entry of small and medium enterprises (SME's) into foreign markets taking advantage of global market integration and globalization (Perenyi and Losoncz, 2018). Economic growth according to Schumpeter (1934) has its base on innovations (new products, new production processes, new sources of raw materials and new organizational structures) and innovations are sought after and implemented by entrepreneurial initiatives (Farinha et al, 2018). These initiatives inclusive of the foreign components increase both productivity and number of new firms which plays a major role in job creation and economic growth (Farinha et al, 2018).…”

“…The socio-economic development of nations and regions is dependent on their ability to compete in the global market place, their capacity for wealth generation, job creation and social welfare for the citizenry in a sustainable manner (Farinha, et al, 2018;Morozova, et al, 2019;Tunali and Sener, 2019). Entrepreneurship is deemed as a very popular concept in development economics in achieving this objective and has long been viewed as a tool for enhancing economic growth, competitiveness and job creation even in difficult times (Audrestch, 2018;Urbano et al, 2019;He, et al, 2019).…”

“…A country's economic growth can be measured in terms of an increasing gross domestic product (GDP) per capita, improvement in competitive index in the global market place and an increasing capacity for wealth and employment creation (Farinha, et al, 2018;Morozova, et al, 2019;Tunali and Sener, 2019). Empirical studies to quantify the impact of global entrepreneurship on economic growth are surprisingly few and in particular, global entrepreneurship is a relatively emerging area of study in the academic field (Guo and Jiang, 2019;.…”

Cluster Analysis of the Relationship Between Traditional and Innovation Economies

“…Therefore, in order to implement any economic and innovative changes in a particular region, close attention should be paid to studying the cultural foundations of that region's population. The interaction between various economic subjects of the region is determined by its cultural environment (Farinha et. al., 2018).…”

Entrepreneurial Innovation Impact on Recycling Municipal Waste. A Panel Data Analysis at the EU Level

“…Therefore, conceptual and empirical studies were run in order to better demonstrate how much entrepreneurship determines economic growth [19,20], concludes towards a circular economy [21], boosts innovation or vice-versa [22][23][24], and even show the link between these three concepts: innovation, entrepreneurship, and economic growth [25]. Moreover, empirical studies were run in order to find out innovative solutions for smart partnerships [26] and sustainable development [27]. Considering all these issues, in order to understand the impact of entrepreneurial innovation on the RRMW, it is important to determine what the business expenditure on R&D and the GDP expenditures on R&D (as main supportive factors for innovation) are, then private investments in general as key factors for entrepreneurship and recycling rates.…”