IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i5p825-829.html
   My bibliography  Save this article

Entrepreneurship, economic growth, and innovation: Are feedback effects at work?

Author

Listed:
  • Galindo, Miguel-Ángel
  • Méndez, María Teresa

Abstract

This study aims to analyze the relationships between entrepreneurship, innovation and economic growth, and to show the feedback effects in these relationships. A Schumpeterian approach considering three equations linking GDP, innovation, and entrepreneurship facilitates this analysis. This paper presents empirical analysis of entrepreneurial activity in 13 developed countries. Panel data with fixed effects methodology, for the period 2002 to 2007, provides the means to estimate the equations. The analysis shows that several factors have positive impacts on innovation and entrepreneurship, including monetary policy and social climate. Additionally, a feedback effect is at work: economic activity promotes entrepreneurship and innovation activities, and the latter enhances economic activity. Therefore, policymakers must consider this effect when designing economic policies.

Suggested Citation

  • Galindo, Miguel-Ángel & Méndez, María Teresa, 2014. "Entrepreneurship, economic growth, and innovation: Are feedback effects at work?," Journal of Business Research, Elsevier, vol. 67(5), pages 825-829.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:825-829
    DOI: 10.1016/j.jbusres.2013.11.052
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313004220
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2013.11.052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005. "Growth and Entrepreneurship: An Empirial Assessment," Papers on Entrepreneurship, Growth and Public Policy 2005-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. G. Page West III & Charles E. Bamford & Jesse W. Marsden, 2008. "Contrasting Entrepreneurial Economic Developments in Less-Developed Latin American Markets: Applications and Extensions of Resource-Based Theory," Discussion Paper Series 2008-03, McColl School of Business, Queens University of Charlotte.
    3. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.
    4. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
    5. Pamela Mueller, 2007. "Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth," Small Business Economics, Springer, vol. 28(4), pages 355-362, April.
    6. Audretsch, David B. & Keilbach, Max, 2008. "Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth," Research Policy, Elsevier, vol. 37(10), pages 1697-1705, December.
    7. David B. Audretsch & Max Keilbach, 2004. "Does Entrepreneurship Capital Matter?," Entrepreneurship Theory and Practice, , vol. 28(5), pages 419-430, September.
    8. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    9. Audretsch, David B. & Bönte, Werner & Keilbach, Max, 2008. "Entrepreneurship capital and its impact on knowledge diffusion and economic performance," Journal of Business Venturing, Elsevier, vol. 23(6), pages 687-698, November.
    10. G. Page West III & Charles E. Bamford & Jesse W. Marsden, 2008. "Contrasting Entrepreneurial Economic Development in Emerging Latin American Economies: Applications and Extensions of Resource-Based Theory," Entrepreneurship Theory and Practice, , vol. 32(1), pages 15-36, January.
    11. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    12. Dale T. Mortensen & Christopher A. Pissarides, 1998. "Technological Progress, Job Creation and Job Destruction," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(4), pages 733-753, October.
    13. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    14. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    15. Audretsch, David & Braunerhjelm, Pontus & Acs, Zoltán J & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
    16. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
    17. Schumpeter, Joseph A., 1947. "Theoretical Problems of Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 7(S1), pages 1-9, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    2. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    3. Edward Nissan & Maria-Soledad Castaño & Inmaculada Carrasco, 2012. "Drivers of non-profit activity: a cross-country analysis," Small Business Economics, Springer, vol. 38(3), pages 303-320, April.
    4. Sahar Bahmani & Miguel-Ángel Galindo & María Méndez, 2012. "Non-profit organizations, entrepreneurship, social capital and economic growth," Small Business Economics, Springer, vol. 38(3), pages 271-281, April.
    5. Urbano, David & Aparicio, Sebastian, 2016. "Entrepreneurship capital types and economic growth: International evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 34-44.
    6. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    7. Castaño, María-Soledad & Méndez, María-Teresa & Galindo, Miguel-Ángel, 2016. "Innovation, internationalization and business-growth expectations among entrepreneurs in the services sector," Journal of Business Research, Elsevier, vol. 69(5), pages 1690-1695.
    8. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    9. Massón Guerra, José Luis, 2007. "El capital empresarial como determinante de la productividad y el crecimiento en España [The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth]," MPRA Paper 4073, University Library of Munich, Germany.
    10. Castaño, María-Soledad & Méndez, María-Teresa & Galindo, Miguel-Ángel, 2015. "The effect of social, cultural, and economic factors on entrepreneurship," Journal of Business Research, Elsevier, vol. 68(7), pages 1496-1500.
    11. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.
    12. Ho, Sin Yu & Beri, Parfait Bihkongnyuy, 2024. "The impact of SME sector on economic growth in Africa," MPRA Paper 122552, University Library of Munich, Germany.
    13. Boudreaux, Christopher & Caudill, Steven, 2019. "Entrepreneurship, Institutions, and Economic Growth: Does the Level of Development Matter?," MPRA Paper 94244, University Library of Munich, Germany.
    14. Michael Fritsch, 2012. "Methods of analyzing the relationship between new business formation and regional development," Jena Economics Research Papers 2012-064, Friedrich-Schiller-University Jena.
    15. Paz Rico & Bernardí Cabrer-Borrás & María Mar Benavides-Espinosa, 2020. "Intangible capital and business productivity in the hotel industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 691-707, June.
    16. Salustiano Martínez-Fierro & José María Biedma-Ferrer & José Ruiz-Navarro, 2016. "Entrepreneurship and strategies for economic development," Small Business Economics, Springer, vol. 47(4), pages 835-851, December.
    17. Guerrero, Maribel & Cunningham, James A. & Urbano, David, 2015. "Economic impact of entrepreneurial universities’ activities: An exploratory study of the United Kingdom," Research Policy, Elsevier, vol. 44(3), pages 748-764.
    18. repec:elg:eechap:14395_15 is not listed on IDEAS
    19. Audretsch, David B. & Keilbach, Max, 2008. "Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth," Research Policy, Elsevier, vol. 37(10), pages 1697-1705, December.
    20. Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    21. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:825-829. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.