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Innovation and underground entrepreneurship

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  • Rajeev Goel
  • James Saunoris
  • Xingyuan Zhang

Abstract

This paper examines the impact of innovation on the underground economy, focusing on differences between informal entrepreneurship and the overall shadow economy. Using cross-national data and measuring innovative activity alternately by patent grants and patent applications, results show that increases in innovative activity spur informal entrepreneurship. The effects of innovation on the overall shadow economy are insignificant. Further, general improvements in government effectiveness seem more effective in checking the underground sector than specific initiatives related to minimum wages or taxes. Transition countries, ceteris paribus, have lower informal entrepreneurship, but higher overall underground economy. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Rajeev Goel & James Saunoris & Xingyuan Zhang, 2015. "Innovation and underground entrepreneurship," The Journal of Technology Transfer, Springer, vol. 40(5), pages 800-820, October.
    • Handle: RePEc:kap:jtecht:v:40:y:2015:i:5:p:800-820
    DOI: 10.1007/s10961-015-9420-0
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    Cited by:

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    2. Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "What induces firms to license foreign technologies? International survey evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 799-814, October.
    3. Eunice Maria M. N. Dos Santos & João J. Ferreira, 2017. "Analyzing Informal Entrepreneurship: A Bibliometric Survey," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-20, December.
    4. Jacob H. Rooksby & Christopher S. Hayter, 2019. "Copyrights in higher education: motivating a research agenda," The Journal of Technology Transfer, Springer, vol. 44(1), pages 250-263, February.
    5. Aziz N. Berdiev & James W. Saunoris, 2019. "Globalization and Informal Entrepreneurship: A Cross-Country Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(1), pages 65-80, March.
    6. Saurav Pathak & Emanuel Xavier-Oliveira & André O. Laplume, 2016. "Technology use and availability in entrepreneurship: informal economy as moderator of institutions in emerging economies," The Journal of Technology Transfer, Springer, vol. 41(3), pages 506-529, June.
    7. Rajeev K. Goel, 2022. "Contributions of creative outputs to economic growth: A disaggregated analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3872-3881, December.
    8. Aziz N. Berdiev & James W. Saunoris, 2018. "Corruption and Entrepreneurship: Cross‐Country Evidence from Formal and Informal Sectors," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 831-848, January.
    9. Aziz N. Berdiev & James W. Saunoris, 2020. "Cross‐Country Evidence Of Corruption Spillovers To Formal And Informal Entrepreneurship," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 48-66, January.
    10. Rajeev K. Goel, 2018. "Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation," Small Business Economics, Springer, vol. 50(4), pages 887-897, April.
    11. Akbal, Can, 2021. "Entrepreneurship and the Shadow (Informal) Economy," MPRA Paper 109739, University Library of Munich, Germany.

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    More about this item

    Keywords

    Innovation; Patents; Informal entrepreneurship; Underground economy; L26; O39; K4;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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