56 Pages Posted: 20 Feb 2012 Last revised: 12 Apr 2014
Date Written: August 5, 2013
We introduce a novel concept of National Systems of Entrepreneurship and provide an approach to characterizing them. National Systems of Entrepreneurship are fundamentally resource allocation systems that are driven by individual-level opportunity pursuit, through the creation of new ventures, with this activity and its outcomes regulated by country-specific institutional characteristics. In contrast with the institutional emphasis of the National Systems of Innovation frameworks, where institutions engender and regulate action, National Systems of Entrepreneurship are driven by individuals, with institutions regulating who acts and the outcomes of individual action. Building on these principles, we also introduce a novel index methodology to characterizing National Systems of Entrepreneurship. The distinctive features of the methodology are: (1) systemic approach, which allows interactions between components of National Systems of Entrepreneurship; (2) the Penalty for Bottleneck feature, which identifies bottleneck factors that hold back system performance; (3) contextualization, which recognizes that national entrepreneurship processes are always embedded in a given country’s institutional framework.
Keywords: National Systems of Entrepreneurship, National Systems of Innovation, Economic Development, Institutions, Index Methodology, Penalty for Bottleneck
Suggested Citation: Suggested Citation
Acs, Zoltan J. and Autio, Erkko and Szerb, László, National Systems of Entrepreneurship: Measurement Issues and Policy Implications (August 5, 2013). GMU School of Public Policy Research Paper No. 2012-08. Available at SSRN: https://ssrn.com/abstract=2008160 or http://dx.doi.org/10.2139/ssrn.2008160
By Erik Stam