The Continued Search for the Solow Residual: The Role of National Entrepreneurial Ecosystem

44 Pages Posted: 6 Dec 2014

See all articles by Zoltan J. Acs

Zoltan J. Acs

Schar School of Policy and Government

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Tomasz Mickiewicz

Aston University - Aston Business School

László Szerb

University of Pécs

Abstract

This paper introduces a new concept in addition to the traditional measures of stocks of capital, labor, human capital and knowledge, to understand the Solow Residual: National Entrepreneurial Ecosystem (NEE). The NEE construct is based on a methodology that combines institutions and human agency into an interdependent system, applying the configuration theory. We argue that NEE affects the efficiency by which inputs are turned into outputs shifting the production function. We use data from a representative global survey and institutional sources to test the model for a cross section of 62 counties over the period 2006-2010 to test this proposition.

Keywords: growth, entrepreneurship, ecosystem, Solow residual, GEM

JEL Classification: L26, J24, P3, O33

Suggested Citation

Acs, Zoltan J. and Estrin, Saul and Mickiewicz, Tomasz Marek and Szerb, Laszlo, The Continued Search for the Solow Residual: The Role of National Entrepreneurial Ecosystem. IZA Discussion Paper No. 8652. Available at SSRN: https://ssrn.com/abstract=2534680

Zoltan J. Acs (Contact Author)

Schar School of Policy and Government ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States
703-993-1780 (Phone)

HOME PAGE: http://home.ubalt.edu/zacs

Saul Estrin

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tomasz Marek Mickiewicz

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

Laszlo Szerb

University of Pécs ( email )

Rákóczi st. 80
Pécs, 7622
Hungary

HOME PAGE: http://ktk.pte.hu/en/department-quantitative-management/laszlo-szerb

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