Working Paper: CEPR ID: DP5409
Authors: Zoltán J. Ács; David B. Audretsch; Pontus Braunerhjelm; Bo Carlsson
Abstract: 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.
Keywords: entrepreneurship; growth; public policy
JEL Codes: M13; O40; R11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Entrepreneurial activity (L26) | Economic growth (O49) |
| Entrepreneurship serves as a mechanism to commercialize ideas (O35) | Economic growth (O49) |
| Entrepreneurial activity (L26) | Knowledge spillover (O36) |
| Knowledge spillover (O36) | Economic growth (O49) |
| Research and development (O32) | Economic growth (O49) |
| Education (I29) | Economic growth (O49) |