The Role of Innovative Entrepreneurship in the Economic Development of EU Member Countries
Journal Title: Journal of Entrepreneurship, Management and Innovation - Year 2019, Vol 15, Issue 1
Abstract
In the specialized literature, entrepreneurship has been acknowledged to have a salient role in driving innovation, economic growth, and welfare, in addition to its effect on job creation. Researchers have expressed different views about the relationship between economic development and entrepreneurship throughout time. It is also considered that innovation is a driving force in the economic development of nations. Therefore, innovative entrepreneurship started to be considered a key factor in modern economic development. For instance, SMEs and innovation lay at the core of the European Union’s development strategy - Europe 2020 strategy. The aim of the article is to analyze the role of innovative entrepreneurship in the economic development of EU member states. Taking into consideration that both processes: economic development and innovative entrepreneurship are multifaceted, the article comes to express the relationship between the two phenomena and its specifics in EU member countries. Given the nature of contemporary highlights of the literature review and the stated research objective, in this article, a model was tested that captures the new or young and innovative firms, as aspects of innovative entrepreneurship and determinants of the economic growth rates. The research method used is regression model analysis. For the statistical data analysis and processing, Stata and SPSS software tools were used. The key findings of the paper show that innovative entrepreneurs (being measured by the Total Early-stage Entrepreneurial Activity (TEA) innovation level) are more present in countries with higher development levels and higher incomes, being motivated by the improvement opportunity they see in becoming entrepreneurs. However, a higher degree of entrepreneurship, especially new firms’ creation, does not substantially contribute to accelerated economic development. This is explained by the variation in the motivation (necessity or improvement oriented) entrepreneurs across EU countries. In the developed countries, the entrepreneurs are most likely to be the Schumpeterian type, while in developing countries most of them are shopkeepers. Consequently, it is clear that EU member countries need friendlier and more efficient new firms’ creation policies, as well as SME supporting tools. The paper has significant practical implications for decision and policy-making authorities in terms of possible directions for innovative entrepreneurship policy development.
Authors and Affiliations
Rodica Crudu
Keywords
Related Articles
- EP ID EP552697
- DOI 10.7341/20191512
- Views 136
- Downloads 0
A conceptual framework to represent the theoretical domain of “innovation capability” in organizations
The term ‘innovation capability’ has been used recurrently in the innovation literature, but there is still considerable divergence about its meaning and implication to organizations. A consensus exists that, to innovate...
Challenges in Bootstrapping a Start-Up Venture: Keenga Research Turning the Tables on Venture Capitalists
This case study chronicles the timeline of a new venture – Keenga Research. Keenga Research has a novel proposition that it is seeking to introduce to the market. The business concept is to ask entrepreneurs to review th...
Funding Innovation in Poland through Crowdfunding
Funding innovative projects is one of the most serious problems faced by business owners in Poland. Therefore, due to the difficulties of obtaining external sources of financing, crowdfunding may constitute a new source...
Book Review. Social Enterprise Model
The book consists of an introduction, four substantive chapters, a summary, and references. In the introduction, the author outlines her research problem which is aimed at the recognition of the most effective business m...
A Framework for the Evaluation of the Feasibility of Public – Private Partnership in Local Government in Serbia
The adopton of the New Law for Local Government Financing is currently underway in a Serbian Parliament procedure. The goal of the new law is the creaton of clear government regulatons which will defne the system of fnan...