Entrepreneurship, Innovation and Economic Growth: Evidence from Gem Data

Posted: 17 Nov 2009

See all articles by Poh Kam Wong

Poh Kam Wong

National University of Singapore (NUS) - Department of Business Policy

Yuen Ping Ho

National University of Singapore (NUS) - Entrepreneurship Centre

Erkko Autio

affiliation not provided to SSRN

Date Written: 2005

Abstract

Because it is difficult to define empirically the role of the entrepreneur, little empirical evidence exists regarding entrepreneurship and economic growth.The Global Entrepreneurship Monitor (GEM) defines entrepreneurship as a process of forming new businesses.Using the GEM's outcome data (Total Entrepreneurship Activity [TEA] rates), the effect of entrepreneurship upon macro level economic growth is explored. A lengthy literature review is provided, including research on the role of entrepreneurship on economic growth and on the theories linking entrepreneurship and economic growth.The model is proposed to incorporate new firm creation and innovation, as primarily based upon the growth model's variant of the Cobb-Douglas production function with Constant Return to Scales.Five hypotheses are proposed based on the model.For this study, the 2002 data set of the GEM is utilized. It is comprised of data from 37 countries and is supplemented by macroeconomic indicators collected from national and international statistical sources. The results support one hypothesis, indicating that High Potential TEA is the sole form of entrepreneurship that has an explanatory effect of differing rates of economic growth.The limits are discussed, as are the exploratory findings of the study and areas for future research. (AKP)

Keywords: Experimental/primary research, Entrepreneurial activity, Global Entrepreneurship Monitor (GEM), Economic development, Startups, Innovation process

Suggested Citation

Wong, Poh Kam and Ho, Yuen Ping Ping and Autio, Erkko, Entrepreneurship, Innovation and Economic Growth: Evidence from Gem Data (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1507610

Poh Kam Wong (Contact Author)

National University of Singapore (NUS) - Department of Business Policy ( email )

17 Law Link
Singapore 117591
Singapore

Yuen Ping Ping Ho

National University of Singapore (NUS) - Entrepreneurship Centre ( email )

21 Heng Mui Keng Terrace
119613
Singapore

HOME PAGE: http://www.nus.edu.sg/nec

Erkko Autio

affiliation not provided to SSRN

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