DP5409 Growth and Entrepreneurship: An Empirical Assessment

Author(s): Zoltán J Acs , David B Audretsch , Pontus Braunerhjelm , Bo Carlsson

Publication Date: January 2006

Keyword(s): entrepreneurship , growth

JEL(s): M13 , O40 , R11

Programme Areas: Industrial Organization

Link to this Page: www.cepr.org/pubs/dps/DP5409.asp

This paper suggests that the spillover of knowledge may not occur automatically as has typically been assumed in models of endogenous growth. Rather, a mechanism is required that serves as a conduit for the spillover and commercialization of knowledge from the source creating it to the firm actually commercializing the new ideas. In this paper, entrepreneurship is identified as one such mechanism facilitating the spillover of knowledge. Using a panel of entrepreneurship data for 18 countries, empirical evidence is found that in addition to measures of R&D and human capital, entrepreneurial activity also serves to promote economic growth.